In the main refinancing operations since the beginning of August the ECB allotted significantly larger amounts of liquidity than under normal circumstances with an aim to limit the volatility of very short term rates around the ECB’s minimum bid rate.
During this crisis monetary policy has had a strong stabilizing role during the crisis in all advanced countries. In 2008 and 2009 policy rates were quickly lowered to historically low levels in the United States, United Kingdom and also in the euro area. In addition, many central banks have used unconventional monetary policy tools. As a result, central bank balance sheets have grown.