The ECB'S Policy Dilemma
|Mario Draghi has made the ECB'S policy direction plain. The bank will use quantitative easing and negative rates to foster economic activity. It is anther version of Mr. Draghi's famous promise to save the euro by whatever means necessary. Mr. Draghi and his colleagues on the ECB know that the efficacy of QE in promoting economic growth is marginal. They only have to look at the United States and Japan for proof. From the ECB'S point of view as at the Fed, the answer is simple, What choice do we have, given our policy tools and mandates? Is this true? And to what degree? Join us for an examination of central bank policy real and imaginary.
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