Category Archives: ECB

Mario Powers Up

Draghi announced SMP2 at today’s ECB presser. Find the details here. The deal is conditional (‘strict and effective conditionality’), focused on the 1yr to 3yr part of the curve, and unlimited in size. The ECB is NOT going to be … Continue reading

Posted in ECB | Tagged | 2 Comments

Cochrane nails fiscal consequence of SMP

Read John Cochrane’s post on the consequences of quasi-fiscal monetary policy for central bank independence. He nails the ECB’s dilemma: Eventually, the ECB will have to suck up this volcano of euros, by selling back the bonds it has accumulated. … Continue reading

Posted in academic economists, ECB, FOMC | Tagged | 3 Comments

not so super Mario …

No one has ever made any money having faith in the ECB – and my skepticism was repaid again last night. Draghi’s non-plan was poorly received by the markets. Whatever it takes amounted to nothing new – and Draghi reacted … Continue reading

Posted in ECB, EUR, FOMC | Tagged , , | 1 Comment

Is Draghi’s ECB different?

With the FOMC having shown its hand, focus now turns to the ECB – to see what Mr Draghi meant when he said that the ECB would do ‘whatever it takes’… Much comes down to the question — is the … Continue reading

Posted in ECB, EUR | 2 Comments