4.3  (Financial stability) implications of the operational measures  Although it is always difficult to draw conclusions from a cross-border comparison – even more as we are right in the middle of a broad refurbishment of the causes and consequence of the current financial market turmoil – I try to derive some conclusions: From today’s perspective it was the right decision of the Eurosystem to act promptly and to inject additional funds temporarily into the money market.
Our ability to preserve financial stability may be enhanced by making sure the Federal Reserve has authority to lend against good collateral to other classes of sound, regulated financial institutions that are central to our financial markets – not on a routine basis, but in some circumstances when the Board of Governors finds that the absence of such lending would threaten market functioning and economic stability.