Draghi’s Dilemma

It seems as though the European Central Bank (ECB) has been debating whether to head down the quantitative easing (QE) path forever. ECB-watchers have been reduced to pondering what Mario Draghi’s (usually) various shades of blue ties might mean for future asset purchases.

This week, the bank is expected to announce the details of its first round of what is being called by many private-sector QE, no matter how reluctant Draghi may be to label it as such.

When first announced, the mass buying of private-sector assets seemed to be the fillip markets have been hoping for – especially as, if it follows the pattern established by the U.S. Federal Reserve, there may be public-sector asset purchases soon (within six months, according to Mark Wall, chief economist at Deutsche Bank).


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