These measures take into account the central role played by the euro area banking system in financing the economy. This contrasts with the financial structure of other economic regions. The above-mentioned measures led to a significant increase in the Eurosystem’s balance sheet: it reached a peak of 19% of GDP in December 2008 from 10% of GDP in mid-2007, up by € billion.
That is because changes to trade policy can work through multiple channels that affect both demand and supply in the economy over time. Such changes can also affect asset prices and the exchange rate. Whatever the outcome, we will be ready to assess the impact as it unfolds, and adjust monetary policy in a timely way, if required.