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"If government borrowing premia hurt monetary policy transmission, they are in our mandate," he said.
Further non-standard measures might be needed to improve monetary policy transmission.
He repeatedly stressed that the aim was to "repair monetary policy transmission channels".
"At the same time they are concerned about losing the monetary policy transmission channel".
In addition, he said: "The governing council may consider undertaking further non-standard monetary policy measures according to what is required to repair monetary policy transmission".
The critical passage in Draghi's comments was this: "To the extent that the size of the sovereign premia hamper the functioning of the monetary policy transmission channels, they come within our mandate".
Similar(37)
Today, policy coordination has resurfaced as a hot topic: while the worst of the global financial crisis is behind us, no one would claim that a return to "Great Moderation" is in the cards, and policymakers around the globe appear worried about policy transmissions across many dimensions.
As part of its electricity reform, Argentina developed a distinctive policy on transmission expansion.
In this work, we first introduce economic model predictive control (EMPC) as a viable economic dispatch policy for transmission networks with energy storage.
Meanwhile, due to the constraint of the energy budget in our policy, the transmission power will eventually tend to a constant value.
As an example policy, the transmission for a non-realtime traffic can be postponed in order to reduce the latency for a realtime traffic (objective function).
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