Alessio Terzi is an economist at the Bruegel Institute, a Brussels-based economic think tank. DW talked to him about the potential impact of the ECB's decision to cut interest rates and expand its bond-buying program.
After previously sparking a mini tantrum in financial markets, the ECB has tried to play a balancing act, emphasizing improved growth while tempering expectations to avoid triggering serious market volatility.
Despite the European Central Bank's policy of infusing cash into the economies across the euro area, the bloc's inflation rate stays stubbornly lower than recommended by governors. They even predict a fresh slump.
The European Central Bank (ECB) knows it can’t change its loose monetary policy too rapidly, lest it shock markets and banks. But change will have to come soon, maybe as soon as Thursday when governors meet again.
A German media report has said Italy and France would be against appointing German central bank chief Jens Weidmann head of the ECB in 2019, when Mario Draghi's turn expires. Much ado about nothing?
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