Actually the idea of introducing such an instrument was originated by the seminar paper written by Professor Hyun Song Shin, who emphasized the importance of controlling the excessive volatility in the banking sector due to increases in non-core liabilities of the banking system. That was the way to deal with the pro-cyclical nature of the changes in the liquidity.
As the Eurosystem continues the same stability-oriented policy, the “quasi Monetary Union” with the D-Mark was an ideal preparation for the participation of Austria in the European Monetary Union (EMU). Let me recall that the main objective of the independent Eurosystem is to maintain price stability, i.e. safeguarding the value of the euro for currently more than 300 million people in the euro area.