What is the most appropriate response of a central bank mandated to price stability in these conditions? The central bank has to promptly and decisively resist the shortage of liquidity, the contraction of finance and the destruction of spendable purchasing power, which is partly embodied in inside money.
If so, why?”, paper delivered at the ECB Forum on Central Banking, Sintra. [8] See Busetti, F., Giordano, C. and Zevi, G. (2016), op. cit. [9] See the Banque de France’s Long-Term Productivity database. [10] Criscuolo, C., N. Gal, P. and Menon, C. (2017), “  Do micro start-ups fuel job creation? Cross-country evidence from the DynEmp Express database”, Small Business Economics, Vol.