With the outbreak of the global financial crisis in 2007 and the turmoil it brought about in the international banking system, trust between commercial banks increasingly dwindled, which significantly hampered the redistribution of liquidity via the interbank market that is necessary for a functioning corridor system. Banks in the euro area began to hoard liquidity or not lend it indiscriminately to banks that were in need of liquidity, meaning that the short-term money market no longer facilitated the smooth distribution of liquidity. The volatility of short-term interest rates went up significantly. As a result, the ECB Governing Council adopted a series of non-standard monetary policy measures, thereby changing the way in which the operational framework is used to implement monetary policy.

Cooperative arrangements are valuable, as they save resources, increase reach and strengthen networks

Dr Johannes Ludwig is the new Deputy Head of the New York Representative Office.

Banks lend each other money. They need to trust each other to do this. The Bundesbank makes sure that banks trust each other.

Am 30. November hat Jens Ulbrich, Chefvolkswirt der Deutschen Bundesbank, in einer bundesweit übertragenen virtuellen Veranstaltung die neue geldpolitische Strategie des Eurosystems einem interessierten Publikum erläutert. Die Folien des Vortrages finden Sie hier.

One year ago, the new Centre for International Central Bank Dialogue was established. Synergies have been harnessed in the field of central bank cooperation by working hand in hand with the Bundesbank’s representatives around the world.

Notes on methodology

There is no mistaking the heads of Horst Antes. Their stark profile and, above all, their schematic stylisation have become the artist’s trademark. They appear in Antes’ paintings as Kopffüssler [Head-and-foot figures] or in public spaces as large-scale steel sculptures.

on the subject of External sector