For another, it would also create a buffer protecting banks against a government running into financial difficulties and its bonds losing value. 4. The role of monetary policy  I believe one thing has become clear. The crisis cannot be easily resolved just like that – there is no magic formula for solving all the problems at one stroke.
Instead, we need reforms at many different levels. We are undoubtedly making progress, but we have not yet reached our destination. Travelling the rest of the way will certainly not be easy. Nevertheless, policymakers must not give in to the temptation of taking what they think is a convenient shortcut. And that brings me to the last point in my speech: monetary policy.