Its operational framework has proved to be robust and flexible to effectively respond to the challenge posed by the drying-up of market liquidity. However – and this is a crucial aspect of the ECB policy – we have operated under the principle of strict separation between the liquidity provision policy and the stance of monetary policy.
Emergency liquidity assistance provided by the central bank in case of a severe bust with expected systemic effects is part of this orthodox view. [20 Although being a robust theory for most of times, the orthodox view has recently been repeatedly questioned for not being optimal in all circumstances.