Gate News bot reports that the Vice President of the European Central Bank, Luis de Guindos, stated that the European Central Bank has learned lessons from its aggressive printing policy and will focus more on the side effects of loose monetary policy in the future.
After curbing high inflation, the European Central Bank is re-evaluating its long-term strategy and policy toolkit, including the large-scale bond purchases and negative interest rate policies implemented over the past decade due to low inflation. Its €5 trillion ($5.8 trillion) money printing operation, known in the market as "quantitative easing/QE", has been criticized for fostering real estate and financial market bubbles, and has led the European Central Bank to face massive losses after raising interest rates.
Jindos pointed out that the "all tools" used in the past will still be retained in the toolbox, but he and his colleagues have become more aware of the drawbacks of these tools. He added that another lesson is that "sometimes opening tools is easier than exiting."
Source: Jinshi
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European Central Bank Vice President: In the future, more attention will be paid to the side effects of loose monetary policy.
Gate News bot reports that the Vice President of the European Central Bank, Luis de Guindos, stated that the European Central Bank has learned lessons from its aggressive printing policy and will focus more on the side effects of loose monetary policy in the future.
After curbing high inflation, the European Central Bank is re-evaluating its long-term strategy and policy toolkit, including the large-scale bond purchases and negative interest rate policies implemented over the past decade due to low inflation. Its €5 trillion ($5.8 trillion) money printing operation, known in the market as "quantitative easing/QE", has been criticized for fostering real estate and financial market bubbles, and has led the European Central Bank to face massive losses after raising interest rates.
Jindos pointed out that the "all tools" used in the past will still be retained in the toolbox, but he and his colleagues have become more aware of the drawbacks of these tools. He added that another lesson is that "sometimes opening tools is easier than exiting."
Source: Jinshi