The now-expired major provisions of the Budget Enforcement Act of 1990, and the act’s later modifications and extensions, provided a set of rules that helped translate a general commitment to fiscal discipline into the actions necessary to achieve it.
As you can see, purchases of bonds in particular have increased the Eurosystem’s balance sheet. If the EAPP is compared with a marathon, we now have 15 km behind us. [Slide 15: EAPP affects inflation and output via several channels] In what follows I will focus on four main channels via which the purchase program transmits to the real economy.