This may disanchor inflation expectations and thus undermine the effectiveness of the measures implemented during the crisis. The ECB has made no exception. The financial crisis that has shaken the global economy for two full years has meant that we had to explore new avenues of monetary policy intervention.
We all had to experiment with new tools, as conventional instruments had been blunted and damaged to some extent by the financial collapse. True, the activation of new tools sometimes has brought us closer to the lines that separate the different spheres of policymaking responsibilities from each other – lines we previously considered as remote.