“We’re critical of this,” Bundesbank spokesman Michael Best said yesterday. In terms of collateral, “we won’t accept what we don’t have to accept,” he said.at http://globaleconomicanalysis.blogspot.com/2012/06/is-there-limit-on-central-banks-ability.html
Fault Lines
Looser collateral is the latest issue to divide Europeans days before a summit that Italian Prime Minister Mario Monti said must succeed or risk a bond-market selloff. German policy makers are reluctant to put too much on the line to help debt- strapped nations before they fix their budgets and banks. French and Italian leaders are pushing for a wider range of crisis- fighting tools..."
Monday, June 25, 2012
Is There a Limit on Central Bank's Ability to Inflate?
"On Friday, ECB President Mario Draghi announced ECB to Accept BBB- Rated Debt (One Step Above Junk) as Collateral. Reaction from the German central bank was immediate: Bundesbank Swipes at Draghi as European Fault Lines Deepen
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment