I agree with this view, but I would also like to stress that any such insurance provided by the central bank should come with appropriate safeguards to mitigate moral hazard.18 Let me explain how the ECB acted in the crisis and how monetary policy in particular has alleviated the fragmentations in the euro area following the principles outlined above.
Second, during the unexpected performance that followed, we adapted policy along the way, essentially accommodating, or at least not interfering with, the dynamism associated with a wave of innovation and entrepreneurial activity. One reason that I am beginning with this nostalgia is to focus on the exceptional performance of 1996 through mid-2000 and take your minds off the more recent travails of the economy.