The ECB, in particular, was in a position to take effective action in the light of the pre-existing arrangements whereby banks had an extensive range of collateral that could be used to access central bank liquidity. These arrangements effectively addressed the problems at the short-end of the money market.
This transition is expected to have a positive effect as the circular model builds economic, natural and social capital and represents a systemic shift that builds long-term resilience by generating business and economic opportunities, with environmental and societal benefits. According to UNEP, the transition to a circular economy could generate USD 4.5 trillion[2] in annual economic output by 2030.