The Corner | March 18, 2015 | What does negative bond yields mean psychologically for investors?
sovereign bond purchases
BERLIN | By Alberto Lozano | The different measures implemented in Europe in order to boost growth through increased monetary action, investment and structural reforms have replaced austerity as the new dominant dogma. While Angela Merkel is adapting to the new situation, Bundesbank president Jens Weidmann disagrees with more budget flexibility and a possible QE by the ECB in 2015. (Cartoon: Horsch / La Repubblica).
MADRID | By JP Marín Arrese | Markets took Mario Draghi´s encouraging promises at face value a couple of weeks ago. However yesterday’s ECB Council meeting failed to endorse any move to bolster the QE strategy. Super-Mario was only able to renew the central bank´s firm commitment to act should economic prospects markedly deteriorate. Investors felt utterly upset and reacted accordingly.