As a starting point, it is worth recalling three key features of the Eurosystem’s operational framework that have played a role in shaping the response to the turmoil in the euro area.
The Eurosystem: (1) grants access to central bank liquidity to a very large range of counterparties; (2) accepts a rather wide spectrum of private and public collateral in all classes of lending operations; and (3) conducts open market operations on a relatively large scale.