In our view, and also replying to one of the questions addressed to the ECB in the letter of the Chairperson of this Committee a few weeks ago, it is expected that the greater transparency resulting from the introduction of the euro and the move to exclusive euro pricing will strengthen competition in the retail sector and thereby support the maintenance of price stability in the euro area.
Humans are prone to temptations, but at the same time, humans are aware of that and take a preventive measure by prohibiting central banks’ underwriting of government securities. We are not able to improve fiscal balance simply by creating inflation (Slide 10).