In 1980, price and credit controls that were enacted to curb inflation further increased market volatility. Bankers found themselves paying higher rates on outstanding six-month certificates of deposit than they received as interest on prime-rate loans when money market interest rates fell 800 basis points from March to June.
In terms of the road ahead, the ECB will continue to assess the costs and benefits of issuing a central bank digital currency (CBDC) that would ensure that the general public remains able to use central bank money even if the use of physical cash eventually declines.