It used to be assumed that once interest rates reached the zero lower bound, 2 then monetary policy would become ineffective. 3 But the post-crisis period saw attempts at monetary stimulus through quantitative easing (or QE) which took various forms but in essence entailed central banks buying government or corporate bonds, thereby injecting liquidity into the system.
We ensure that the financial conditions in Europe are appropriate for the economy. What measures have to be taken to manage the risks of greater global financial integration without losing the benefits that it brings? Volatility is currently high in global capital markets, due to macroeconomic uncertainty and changing business models.