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Abstract
When a financial crisis erupts, central banking becomes more complicated. Central banks then have to take 'non-standard' measures, most of which have a quasi-fiscal character. Since the start of the crisis central banks all over the developed world thus expanded their balance sheets massively, acquiring the sorts of assets they would normally have considered too risky. These asset purchases involve delicate decisions, trading off financial stability against taxpayers' interests, and perhaps even price stability, in the long run. The general rule within the Eurosystem is that decisions on monetary policy are taken on a 'one-man-one-vote' principle, with the six members of the Executive Board residing in Frankfurt participating in the vote. However, financial decisions (eg, on profits and loss) are taken by weighted voting, according to the weights of member countries in the ECB. Central bank governors from the periphery are likely to favour using the ECB balance sheet to help their banks or governments.