To conclude on this estimate of effectiveness, the IMF – regarded as an objective judge of the relevance of economic policies – was unequivocal in its assessment at the last G20 meeting in Shanghai at the end of February, saying, “The ECB’s asset purchase programme has supported the recovery by improving confidence and financial conditions [and] monetary policy should remain accommodative”. 3) What about the risks? I talked earlier about the risks of doing nothing: we need to take action in order to bring inflation back up towards 2%. That said, we also need to keep a close eye out for any possible negative side-effects of our monetary policy, notably for financial stability. We are actively monitoring the financial cycle, including in France where the task falls to the Haut Conseil de Stabilité Financière (High Council for Financial Stability), set up in 2013: I will be taking part in its 8th meeting at the Finance Ministry tomorrow. For the time being, there are no signs of any bubbles forming in the main financing markets: on the whole, developments in the equity markets appear in line with corporate profit forecasts, while evolutions in bond yields also seem consistent with the outlook for inflation and growth. Nor are there any signs of excessive credit growth in the financial system. Nevertheless, we remain vigilant over all aspects of the current macroeconomic and financial environment.
At European level, we need to move finally towards a true economic union, in addition to the monetary union embodied in the Eurosystem. Only by optimising the governance of the euro area can we optimise growth. The current extremely accommodative monetary policy stance creates the ideal conditions for carrying out much-needed reforms. It should not be used instead as an excuse for putting them off: Europe and France urgently need to make the most of this opportunity, right now. Thank you for your attention. 4  BIS central bankers’ speeches