But other potential instruments are not considered in the paper. For example, intervention in the foreign exchange market in the form of reserve accumulation, which has been used in many emerging markets. This is helpful on the way in, in terms of dampening the inflows, but it also helpful in dealing with the outflows when they come.
Since the terms of its access to Eurosystem monetary policy credit operations will have been frozen and perhaps even further restricted, it will not be able to meet its increased liquidity needs through this means. What will the bank do? It is likely to seek recourse to ELA from its national central bank in order to meet these additional liquidity needs.