The decision of the ECB sends a strong and convincing argument that it is determined to pursue its mandate of price stability. The programme constitutes a necessary step to help end the European crisis. We don’t have to like the programme, but we should support it to give Europe a perspective for the future.
The size of the purchase programme sends a credible signal to financial markets, also as it exceeds expectations. The ECB rightly underlines the urgent responsibility of governments to implement needed reforms.
The ECB keeps its options open as makes an end of the purchase programme conditional on it achieving its price stability objective. The ECB sends a compelling message to its German critics by stressing the Bundesbank agreement to that the new programme is a monetary policy instrument, which does not constitute monetary financing.