However, it should be duly noted that, throughout the difficult times of the financial and sovereign debt crisis, the broad collateral framework was regarded as a great institutional strength of Eurosystem’s monetary policy.
Instead, we thought that a credible set of unconventional policy tools could greatly reduce the need for this type of insurance.14 Would more commitment to the level of prices help? Now, a bigger innovation to the policy framework would be to set a target path for the level of aggregate prices, rather than an inflation rate.