the eurosystem is the maintenance of price stability. interest rate policies should remain geared towards that primary objective, with a clear distinction being made between the monetary policy stance and the management of the banking system ’ s need for liquidity. • a central bank can provide liquidity to the banking system as a whole through its regular open market operations. these can be extended in terms of the maturity of the lending operations and relaxed in terms of their tender procedures, depending on the nature, depth and expected duration of a liquidity crisis. furthermore, financial institutions have access to standing lending facilities, which are normally provided to banks at a penalty rate. • collateral policies should at the very least obey the principle of central bank “ inertia ” in a crisis – i. e. they should not be tightened. they can even be loosened, provided that an appropriate risk management framework guards against both financial risk for the central bank and moral hazard. again, the precise measures implemented by a central bank will depend on the nature, depth and expected duration of a liquidity crisis. • extraordinary liquidity measures can be complemented by non - standard monetary policy measures, such as the outright purchase of securities. one example of such a measure is the covered bond portfolio programme announced today. such purchases have a longer - lasting impact on the balance sheet of the central bank, making it all the more important that a carefully designed risk control framework be put in place. • furthermore, the central bank can provide emergency liquidity assistance to individual banks in so far as these are illiquid but not insolvent. this must be done in close cooperation with supervisory authorities, in order to ensure that informed decisions are made and public resources are used wisely. admittedly, the chain reactions that can be triggered by liquidity problems mean that it is sometimes difficult to determine whether a financial institution that requires liquidity assistance remains inherently solvent. • on specific occasions some central banks have also played an important role as a catalyst for private rescue measures ( as was the case, for example, in the role played by the federal reserve system in the bailing out of long - term capital management in 1998 ). 5. central banks ’ impact on the functioning of the markets furthermore, central banks should make an active contribution to improved market transparency, first and foremost by supporting market initiatives in this regard and thereby helping to support the identification and analysis of systemic risks. for instance, securitisation could be made more transparent, leading to the availability

pp. 69 - 70. 12. see deutsche bundesbank ( 2022 ), rise in energy prices, the exchange rate of the euro and germany ’ s price competitiveness, monthly report, december 2022, pp. 45 - 54. 13. world bank group ( 2023 ), world development report, migrants, refugees, and societies, wdr _ fullreport. pdf [ https : / / favis. inet. bundesbank. de / csdav / nodes / 477962819 / wdr _ fullreport. pdf ], pp. 70ff. 14. federal statistical office ( 2023 ), arbeitskrafteangebot : erwerbsbeteiligung unter den 25 - bis 59 - jahrigen 2022 mit 87 % bereits auf sehr hohem niveau, 27 april 2023. 15. see deutsche bundesbank ( 2022 ), rentenversicherung : long - term scenarios and reform options, monthly report, june 2022, pp. 47 - 61 ; deutsche bundesbank ( 2019 ), long - term outlook for the statutory pension insurance scheme, monthly report, october 2019, pp. 53 - 81 ; federal ministry for economic affairs and energy ( 2021 ), vorschlage fur eine reform der gesetzlichen rentenversicherung, gutachten des wissenschaftlichen beirats beim bundesministerium fur wirtschaft und energie ( bmwi ( bundesministerium fur wirtschaft und technologie ) ), 22 april 2021 ; international monetary fund ( 2019 ), germany : 2019 article iv consultation – press release ; staff report ; and statement by the executive director for germany, imf ( international monetary fund ) country report no 19 / 213, july 2019 ; oecd ( organisation fur wirtschaftliche zusammenarbeit und entwicklung ) ( 2020 ), oecd ( organisation fur wirtschaftliche zusammenarbeit und entwicklung ) publishing ; german council of economic experts ( 2020 ), corona - krise gemeinsam bewaltigen, resilienz und wachstum starken, annual report 2020 / 2021, 10 november 2021. 16. deutsche bundesbank ( 2022 ), productivity effects of reallocation in the corporate sector during the covid ( corona