ECB Has Options to Deal With Deflation

Paul Carrel writing for Reuters outlines the five options available to the ECB:

ECB policymakers have discussed – in theory – a number of policy measures they could deploy to deal with either of these scenarios. Each comes with its own merits and drawbacks.

  • INTEREST RATE CUT

  • STERILISATION SUSPENSION

  • LTRO

  • QE

  • SHARPER FORWARD GUIDANCE

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza