Instead, in assessing the ECB’s monetary policy measures, the primary metric of success remains their impact on inflation rather than on the balance sheet. So how will these measures contribute to stimulating higher inflation? The purchases of simple and transparent ABS will strengthen the direct pass-through effect of the TLTROs, i.e.
However, once the euro was successfully introduced, attention shifted to improving the functioning of the single European financial market. The late 1990s saw the launching of an ambitious plan - the Financial Services Action Plan - , which contained a series of legislative and other measures that would allow the European financial services sector to gradually realise its full potential.