[35] To give a stylised example, when a euro area household buys a US Treasury bond from a foreign investor, the household must send payment to the seller. This implies a reduction in household deposits and – in the simplest case – an increase in foreign deposits.
Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate. Let me now explain our assessment in greater detail, starting with the economic analysis.