For then, the Eurosystem would largely be unable to shape monetary policy autonomously. Indeed, the EFSF would be able to generate a virtually unlimited flow of funds to the capital markets and shift risks  BIS central bankers’ speeches  3  around between member states by purchasing large quantities of sovereign bonds.
Bringing inflation under control is therefore now the number one priority. In this situation, all eyes are focused on monetary policy, and rightly so. Whilst it may not be able to lower energy prices or make food cheaper, what it most certainly can do is prevent high inflation from becoming entrenched.