Roger W Ferguson, Jr: Financial engineering and financial stability Speech by Mr Roger W Ferguson, Jr, Vice Chairman of the Board of Governors of the US Federal Reserve System, at the Annual Conference on the Securities Industry, American Institute of Certified Public Accountants and the Financial Management Division of the Securities Industry Association, New York, 20 November 2002.
While such effects have been extensively studied in other jurisdictions where large-scale asset purchases were introduced, the way in which they work may differ in the euro area compared with other regions given our specific financial structure – namely the prevalence of bank-based over market-based intermediation. Indeed, I expect that an important transmission channel for our new measures will be via banks.