In this way the central bank would essentially change the composition of the liabilities side of its balance sheet, moving away from excess reserves and towards lessliquid debt securities. The effect, compared with government debt issuance, would in essence be the same.
The main downside risks relate to the impact of weaker than expected growth in the euro area and globally. The monetary analysis indicates that the underlying pace of monetary expansion remains subdued. The annual growth rate of M3 decreased to 1.6% in December 2011, after 2.0% in November, reflecting a further weakening of monetary dynamics towards the end of the year.