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On the issue of possible inflation risks stemming from OMTs, let me assure you that, from a pure liquidity perspective, OMTs will not inject one euro more into the economy.
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In particular, striving towards effective supervisory convergence would play an important role, as the developments of common standards and guidelines will provide a consistent framework for financial supervision and reduce the respective compliance burden for cross-border institutions.
Then, and provided that precedence is respected, the ECB can support the economic policies of the EU on a broader scale.We have made national fiscal policies more responsible under the Fiscal Compact, and subject to stronger surveillance.No matter how much deflation there is however the combined interest is not allowed to go below zero.This set includes important monetary and financial variables which influence the way monetary policy intentions are transmitted to price-setting decisions in the medium term.In the identification of its policy orientation, the ECB bears in mind that an inflation rate too close to zero restrains the conduct of policy in deep recessions and it also filters out a host of factors that distort the measurement of the policy-relevant drift.In providing liquidity to our banking counterparties, we cannot and do not want to subsidise banks that are failing.
The ECB is part of the construction of Economic and Monetary Union, with a very clear but very limited mandate.S.Original maturity is a point part way into the bond's 30 year y 1997 and April e new rate for EE bonds will be 90 of the average yields on 5-year Treasury securities for the preceding six months; will increase in value every month instead.It does not necessarily aim to inject additional stimulus in lower-bound conditions, but to repair a breakdown in asset pricing and in the functioning of the credit market.The intellectual foundation of the monetary union is Robert Mundells insight that exchange rate stability, financial integration and national monetary policies are incompatible objectives: a concept that has been called Mundells trilemma, or the impossible trinity.I understand that the new solvency system for the insurance sector takes its starting point in a three-pillar structure inspired by the Basel II regime: quantitative requirements (Pillar 1 supervisory review (Pillar 2) and supervisory reporting and public disclosure (Pillar 3).Today I will try to illustrate how the ECB has fulfilled its mandate in an environment in which our traditional instruments have been tested to their limits.Therefore, close cooperation among sectoral committees and authorities is important to ensure an effective and consistent supervisory response.However, ceiops is somehow in a privileged position.

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Under the second approach to non-standard policies, a central bank does not aim to withdraw duration risk from the economy.