2  BIS central bankers’ speeches  This also shows that, in this respect too, a balancing act is required when selecting an appropriate strategy for liquidity provision. Being too restrictive in granting liquidity can cause a spark to turn into a fire.
The first is that, as the growth in production volumes declines, central banks are having their banknotes printed on more durable substrates in order to extend banknote life in circulation and, thereby, reduce medium- to long-term printing costs.