For our part, we can reduce funding costs, which we have done, but if afterwards there are no investment plans available for the banks to channel this funding into, that is not the fault of the ECB. We cannot do everything. So the message is that countries have to implement structural reforms and have an appropriate fiscal policy.
Clearly, the boom and bust would have been much smaller had the central bank followed a different monetary policy, based on enlarging its information set to include credit developments. 3. A more explicit role for financial conditions in monetary policy  So far I have discussed the pre-crisis consensus view on monetary policy and asset prices from a general perspective.