Our decision to conduct outright purchases of covered bonds is fully consistent with this fundamental principle. While they are expected to be effective in supporting credit, these purchases do not burden the Eurosystem with excessive credit risk. More generally, I have already mentioned that different environments call for different actions, even if there is agreement among central banks about the ultimate objectives.
This helps to explain why the ECB’s enhanced credit support measures, by contrast with the concepts of “credit easing” and “quantitative easing”, do not involve outright purchases of sovereign debt. On this feature, I would like to make three comments, stressing pragmatism, principles and preparations for exit. First, there is a pragmatic explanation. History matters to a prominent degree.