The ECB’s contradictory behaviour

The ECB at all costs wants to prevent a banking crisis from returning, which explains its support for severe banking regulations (high levels of capital and liquidity reserves) and for the use of macroprudential policies. This has actually helped reduce credit to private sector and the size of banks in the euro zone. But at the same time, the ECB wants to correct the excess savings and restore core inflation in the euro zone, which explains the implementation of extremely low interest rates and very abundant liquidity This may give rise to a number of financial imbalances: excessive public debt, real estate price bubble, capital outflows. So it is odd that the ECB can, at the same time, want to reduce the risk of a crisis triggered by banks and increase the risk of a crisis triggered by other financial mechanisms.