You don’t need me to tell you that I was, and I still am, one of the sceptics regarding purchases of sovereign bonds in the euro area. Having outlined my arguments on many occasions, for example at a City of London event in February, I will be brief today.
The existence of wellfunctioning global financial safety nets would also help to reduce EMEs’ temptations to pile up large volumes of foreign reserves for self-insurance, and thereby mitigate the problem of the global imbalances. Concluding remarks Let me conclude.