Let me conclude. As Stan Fischer said in a recent Tinbergen Lecture in Utrecht, the big question monetary authorities face in these times is – what do you do if policymakers that should tackle problems do not act sufficiently? My answer is that monetary policy cannot solve the crisis, since it is rooted in fiscal policy and the vulnerability of the banking system.
In addition, several central banks – including the ECB – have also adjusted their monetary policy stance to take into account the impact of the financial market turbulences on inflation and real activity.