Currency and Financial Markets ECB Monetary Policy

Monetary policy in the euro area will remain expansionary for a long time to come

The ECB has reached a historic turning point and will now end its QE program. So far, the ECB has been very successful in engineering the monetary policy reversal without triggering financial market volatility. This week’s decision by the European Court of Justice (ECJ) in favor of the ECB and against German euro critics is an important confirmation for the ECB’s course.

Monetary policy in the euro area will remain expansionary for a long time to come. The ECB has … [continue reading]

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ECB Europe Monetary Policy

Statement on the lawsuit against ECB QE program

The decision of the German constitutional court concerning the lawsuit against ECB QE program is a false compromise. The constitutional court signals that it considers the ECB QE program as a violation of European law and to constitute monetary financing. Yet the constitutional court is not willing to take a decision itself at this stage, but rather asks the European court of justice (ECJ) for “advice”.

I expect that the ECJ will again support the ECB, as it did with … [continue reading]

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