For the ECB to operate in this environment, and to be responsible and effective in accomplishing its objective, we have to use a wide range of instruments. Some instruments are standard, some non-standard, but all are based on the ECB Statutes. The use of these instruments has been essential in safeguarding our objective during the financial and sovereign debt crisis.
In the run-up to the crisis, inappropriate fiscal, structural and other economic policies fostered an excessive build-up of risk in the financial sector and created vulnerabilities on a global scale. When the crisis erupted, these vulnerabilities placed a heavy burden on central banks. In particular, the threat of a financial meltdown jeopardised their capability to counteract downside risks to price stability.