We are keeping interest rates low to stimulate the real economy and to achieve price stability. In order to save the euro, you announced decisive measures in the middle of 2012 – “whatever it takes”. Does that mean that you are consciously putting German savings at risk to save the euro? Draghi: No. Quite the opposite.
On the other hand, some commentators have raised concerns that negative shocks to the local economy might be destabilizing after integration because, for example, multistate banks can move capital elsewhere. Recent empirical evidence suggests that the former effect dominates, as state-level economic volatility appears to decline with interstate banking deregulation.