Given the severity of this crisis and the threat of massive economic damage, our monetary policy decisions are in my view appropriate. By the way, the Court’s judgement relates to the existing asset purchase programmes the rules of which we have basically left unchanged. Would it help if crisis bonds, jointly issued by the euro area countries, were now available? That could help.
This is an easing of monetary policy, also known as accommodation, beyond what is provided by maintaining the federal funds rate close to zero. It is important to emphasize that the effects of asset purchases also depend on expectations.