Ferdinando Giugliano, (2017), “The ECB Shows It Has Won the Market’s Trust“, Bloomberg, 27 October
The European Central Bank’s decision to reduce the pace of quantitative easing as of next year is the story of the dog that didn’t bark. For months, the expectation was that this historic announcement would cause disruption in the financial markets, sending bond yields higher and stock prices lower. What we saw instead was a very orderly and even cheerful reaction — showing central banks may have finally mastered how to communicate with investors.
Relevant Posts
- Hüttl, Pia, Pichler, David, (2017), «An update: sovereign bond holdings in the euro area – the impact of quantitative easing», Bruegel, 10 October
- Bordo, Michael, Siklos, Pierre, (2017), «Central banks: Evolution and innovation in historical perspective», VoxEU, 17 October