And it’s true that monetary policy by itself is not enough to strengthen the euro area economy in a sustainable way and create prosperity for all. Let’s take a closer look at these things.
The ECB’s monetary policy The ECB did a great deal to help combat the crisis, starting with the banking turmoil in 2008, the sovereign debt crisis from 2010 onwards and later the prolonged low inflation. In doing so, it took a number of measures. Some of them form part of conventional monetary policy, others are new or, at least for the euro area, unusual.