The solution to this instability problem is not to provide a safety net for the shadow banks and regulate them more but, instead, to remove exceptions in which money market instruments are treated essentially as deposits. The current exceptions encourage significant short-term funding of longer-term assets.
Concluding remarks Sceptics have often questioned the information content of monetary data and thus criticised the role played by monetary analysis in the ECB’s monetary policy strategy. Often such critiques are based on only a casual knowledge of the euro area data.