8  C. Kok-Sorensen and T. Werner, 2006, “Bank interest rate pass-through in the euro area; a cross-country comparison”, ECB Working Paper No 580. 9  See Blanchard O., L.F. Kats, 1992, “Regional evolutions”, Brooking Papers on Economic Activity, and Obstfeld M., G. Peri, 1998, “Regional Nonadjustment and Fiscal Policy: Lessons for EMU”, NBER Working Paper 6431, as references.
In concrete terms, this means that the central banks in the Eurosystem will reduce their bond holdings by not replacing EUR 15 bn of maturing securities each month. From a market-functioning perspective, there are good reasons for taking such a measured approach.