This was particularly evident in the market for government bonds of some euro-area countries. At the same time, it was now becoming increasingly clear that some economies in the euro area were not exactly in the best of shape. Countries were vulnerable in the face of pronounced current account deficits and high reliance on capital inflows from abroad.
Now I’ll shift over to the monetary policy aspects of our GBPP. From market functioning to monetary policy In summer 2020, after markets had recovered from the initial shock, we announced a shift in the focus of the GBPP to a monetary policy function. Most of you know this as quantitative easing (QE).