But whilst our actions are necessary for economic recovery, they will be efficient only if national governments act in parallel. So the ECB is ready to pursue US-style quantitative easing, that is, repurchasing government bonds? The Governing Council will meet on 22 January.
Monetary policy does not have an effect on the supply side, but can work to ensure demand is stronger than it otherwise would be. Lower interest rates will provide more disposable income to the household sector and those businesses with debt.