von humboldt. central banks ventured into what was until then largely uncharted territory, armed with a raft of non - standard measures, and are still in the process of exploring this new monetary policy landscape. it would be premature to make a conclusive judgement about the purchase programmes today. there has been too little research into the longer - term effects of non - standard monetary policy, in particular. recently, my colleague on the governing council, luis de guindos, rightly called for a greater focus on the side effects in future. and for a long time now, i have untiringly pointed out this precise issue. https : / / www. bundesbank. de / en / press / speeches / consistency - as - a - mandate - 816296 3 / 9 11 / 29 / 2019 consistency as a mandate | deutsche bundesbank when it comes to the app, my main criticism is of the purchase of government bonds in the euro area. the eurosystem central banks have now become the countries ’ biggest creditors. this threatens to blur the line between monetary policy and ﬁscal policy. additionally, the risks to ﬁnancial stability may increase as the period of ultra - loose monetary policy continues. the very low risk - free interest rates make riskier investments more attractive in relative terms. many investors on the search for yield may probably be willing to take on more risk, and may rebalance their portfolios accordingly. the impact of non - standard monetary policy measures relies to a certain extent on this portfolio rebalancing by market participants. it ensures that the expansionary stimulus provided by monetary policy is also transmitted to those areas of the ﬁnancial system where the central bank is not directly active. [ 9 ] however, it may become a problem if market players take on more risk than they can bear. 4 financial stability here in germany, this issue is being discussed not least with a view to the property market. since 2010, house prices have risen extremely steeply : by just under 60 % nationwide and even by close to 80 % in urban areas. healthy economic growth and low interest rates are likely to have been key drivers of this. and both probably owe something to the accommodative monetary policy. however, the price rise in german cities was much stronger than appears justiﬁed by longer - term economic and demographic factors. as bundesbank estimates show, residential real estate in those areas was overvalued by between 15

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