Michael Hewson, Chief Market Analyst at CMC Markets, tells us that the ECB has failed to address the problem of non-performing loans in the eurozone.
The ECB's purchase of government bonds was an attempt to save countries such as Greece, Spain and Portugal from default. It was particularly controversial in Germany, where multiple lawsuits challenged its legality.
The European Central Bank looks has removed a key pillar of its support for the euro area economies. At their final policy meeting this year, ECB governors announced the end of their bond-buying program.
We don’t know if the rumors that Italy's PM checks Italian-German bond yield spreads several times a day are true. But as the ECB ends stimulus and Rome refuses to budge on its budget, he might want to start.
After several decades in which the independence of central banks was seen as essential to economic stability, the notion is being questioned again. So are central banks free spirits? And do they truly need to be?
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