The Bank of Japan is implementing an intensive quantitative easing program and, similarly to the ECB, they include both public and private issues, but with a very important weight of public debt, which amounts now to more than 80 % of Bank of Japan’s total assets. The size of the Bank of Japan balance sheet represents now more than 75 % of the Japanese GDP. The provision of ample liquidity by Central Banks has contributed to restore financial market functioning in situations of severe stress and so, to support the economy. In the euro area, the effects of ECB actions are estimated to have contributed to reduce financial stress and fragmentation, easing financing conditions and helping to restore the credit channel. According to available estimates, all these developments have added significantly to inflation and GDP growth over the last two years. And, although quantitative estimates are surrounded by some uncertainty, it is clear by now that this battery of monetary policy actions have reduced the likelihood of very adverse scenarios. In due course, a need to restore more normal monetary conditions will arise, although its precise timing is impossible to predict and will depend on the cyclical situation of each economy or monetary area. This normalization process may create a scenario of monetary policy divergences, in which there maybe unexpected exchange rate movements and communication is very relevant.
The Governing Council has today also adopted an ECB Regulation establishing transitional provisions for the integration of Greek credit institutions into the Eurosystem’s minimum reserve system, as a consequence of the introduction of the euro in Greece as from 1 January 2001. BIS Review 97/2000  2