Before concluding, I would like to emphasise that the institutional framework of the euro area leaves no room for an coordination between the single monetary policy of the ECB and the national fiscal policies. The Treaty sets up a clear allocation of responsibilities between monetary policy and national fiscal policies, with a view to ensuring a smooth functioning of monetary union.
The reason is that any new supply would be absorbed with smaller price changes, given the scarcity of the underlying asset. The persistence of asset purchase programmes: evidence Both of these stylised representations are supported by the data.