Tag : QE

ECB: Sintra’s syntax

The market reaction to the introductory speech of Mario Draghi at the ECB conference in Sintra was strong
This reflects a high degree of unease about the prospect of a policy normalisation.


New monetary season

For the financial markets, summer’s end is often the occasion for deep-felt upheavals. This summer, investors left on vacation filled with trepidation about the economic impact of Brexit, about robust job creations in the US and how they might change monetary policy prospects, and about the outcome of European banks’ stress tests.


Monetary boomerang

In most countries, central bank independence from government is taken for granted. Yet, the autonomy, i.e. the ability to do whatever a central bank considers necessary within its mandate, is sometimes surprisingly limited, albeit for other reasons.


Contagion: no longer what it used to be

Since 2010 contagion has evolved between Greece on the one hand, and Spain and Italy on the other hand.


ECB QE pushes down bond market volatility

The volatilities of daily bond returns in the US and Germany are highly correlated although, on average, the volatility in Germany is lower.