Monetary policy in the euro area is a one-size-fits-all approach, since key interest rates, in particular, are set for the currency union as a whole, in keeping with our objective of price stability. Given the subdued price pressures in the euro area in the aftermath of the financial and sovereign debt crises, monetary policy accommodation has certainly been warranted.
But the long period of ultra-low interest rates comes with risks and side effects, some of which I have mentioned earlier. And what might be, by pure chance, the right amount of monetary stimulus to kick-start lending in one Member State might over-rev the financial engine in another. 4/7  BIS central bankers' speeches  That’s when macroprudential policies come into play.