Yet that discretion is always bounded by two factors: the nature of the shocks hitting the economy; and the credibility of our objective in the face of those shocks. If the economy has been hit predominantly by demand shocks, there is no case for the central bank to delay policy action.
During the run-up to the introduction of the euro, the Eurosystem established the TARGET system and the Correspondent Central Banking Model (CCBM) which enabled the area-wide settlement of large-value transactions in central bank money and the cross-border delivery of collateral to the Eurosystem.