Editorial : Monetary policy remains accommodative, net asset purchases about to end

Abstract

Monetary policy has remained decidedly accommodative in the euro area, all throughout the different phases of the global financial crisis, sovereign debt crisis and the once-looming threat of deflation. To begin with, key interest rates were lowered rapidly. Secondly, the Outright Monetary Transactions (OMT) scheme was implemented to spare the monetary union the risk of break-up, which proved to be highly effective in raising confidence despite the total absence of asset purchases. Thirdly, the public sector purchase programme (PSPP) was initiated.