Mr. Greenspan looks at some important issues arising from new information and communications technologies Remarks by the Chairman of the Board of Governors of the US Federal Reserve System, Mr. Alan Greenspan, at the Conference on Privacy in the Information Age held in Salt Lake City on 7/3/97.
But at the same time, this makes public finances more vulnerable to future changes in central bank policy rates. You see, if the Eurosystem raises its key policy rates again, this will weigh on its own balance sheets. Higher interest will have to be paid on the bank deposits, while interest income from the purchased bonds will remain constant, to begin with.