The announcement by the US Fed in May last year that a reduction of asset purchases was likely to commence at some stage later in the year had a marked impact on these global capital flows, amid initial uncertainty about the timing and quantum of the tapering.
In the area of monetary policy too we have put in place the largest measures to date. There are two key measures: (i) the pandemic emergency purchase programme, in the amount of EUR 1,850 billion, and (ii) extremely low-cost long-term loans to banks in the amount of EUR 2,200 billion. The two measures together amounted to an incredible 36% of euro area GDP.