The ECB announces the end of the extraordinary monetary policies: the markets do not make a move, as does the spread. What if the quantitative easing has not been a “protective shield” for Italy then? What if it only contributed to change the composition of the Italian public debt, with only temporary effects on the risk premium? Doubts and non-mainstream clues
Draghi’s quantitative easing has been a determining factor in breaking the ‘doom loop’ between weak banks and weak Countries. Now, after the extraordinary monetary policies, there is a development cycle stronger than before, as in the case of exports and capital flows
The ECB has already bought close to €1,800 billion of bonds. it is not possible to determine where rates would be today if the ECB had not engaged in its ‘quantitative easing’. It is possible, however, to ‘follow the money trail’ to ascertain how much was bought and by whom.