They do not address the fundamental cause of the problems, that is an overhang of illiquid assets on banks balance sheets due to former credit excesses. 5  The current monetary policy stance in the Eurosystem  For setting the Eurosystem monetary policy stance, however, the outlook on price stability is the magnetic needle of the Governing Council.
It is only the possible repercussions of stress in financial markets on real economic developments and on the outlook for inflation that is of interest for monetary policy in that regard. Against this background the fallout of the financial market tensions – but also the effects of higher commodity prices – will be a more moderate, but still resilient, global growth.