When Mario Draghi, the new ECB president, embarked on the programme shortly
before Christmas, it was hailed as a masterstroke which had saved the
eurozone from financial and economic calamity. Even the Jeremiahs of
Germanys Bundesbank, proud keepers of the sacred flame of monetary
conservatism, were stunned into grudging acquiescence by the evident
seriousness of the crisis. But now the doubts are beginning to set in, and
with good reason.
Tags: Monetary
WHEN something looks dangerous, it generally is. And few things look quite so high-wire right now as the European Central Banks efforts to hold the euro together by flooding the banking system with free money.
This week, the ECB injected a further 529.5 billion via long-term refinancing operations, or LTROs, bringing the tally to more than one trillion euros.
When Mario Draghi, the new ECB president, embarked on the program shortly before Christmas, it was hailed as a masterstroke that had saved the euro zone from financial and economic calamity. Even the Jeremiahs of Germanys Bundesbank, proud keepers of the sacred flame of monetary conservatism, were stunned into grudging acquiescence by the evident seriousness of the crisis. But now the doubts are beginning to set in, and with good reason.
Tags: Monetary
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