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Prepared by Zenon Kontolemis.
More precisely, it is stability of inflation at a low level. Price stability would require a large deflation to follow a large positive price shock.
The overdraft facility was closed recently after an agreement between the Treasury and the Central Bank. According to the statutes however “The Central Bank shall act as banker to the Treasury…[and]… may advance short-term loans to the Treasury” (Article 10).