Differences in the consumption and investment patterns among countries (a saving glut in Asia and oil exporting countries and a spending binge in the United States) have resulted in emergence of global imbalances which led to large capital flows from surplus countries into deficit countries which were mostly the advanced countries.
This may permit a progressive reduction in the importance of government-guaranteed bank bonds, the volume of which is about € billion after the application of haircuts. The introduction of new collateral eligibility criteria and the ample supply of long-term liquid funds are helping to restore a uniform transmission of monetary policy in the various euroarea countries.