Of course we know that capital markets are not frictionless. This opens up an important role for central banks to intervene in asset markets via outright purchases and to act on the term premium.
3  BIS Review 56/2000  Regarding the issue of cross-border retail payments, which has been raised by the European Parliament on various occasions, I should like to recall that, in September 1999, the ECB published a report entitled “Improving retail cross-border payment systems - the Eurosystem’s view”. The report called on the banking sector to provide substantially improved services by 2002.