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On The ECB’s Wholly Unsurprising ‘Surprise’
Anyone doubting whether Mario Draghi could deliver a "dovish surprise" was, well, surprised on Thursday, although this looks like a case where overt dovishness is being taken as an indication that the ECB knows something you don't (hence the negative reaction in equities).
In addition to updating the forward guidance on rates (no hike "at least through the end of 2019"), the ECB went ahead with an announcement on a new round of TLTROs.
Depending on which desk you were inclined to listen to hea
You know, after a few more years of doing the exact same thing and a few more trillion €, I really think the E.C.B. is going to turn this ship around because there are definitely not any structural problems with the single currency itself. It is like your delicious, delicious blue meth. You want to strike that delicate balance between overdose and withdrawal. Not enough for market forces to work. Not too much where you have fiscal transfers and full European integration. The middle path, like Buddha.
“Logical response”, yes. Efficacy is where the debate is going. Who will be the first with helicopter money? In fact it appears Trump uses his own helicopter.
https://heisenbergreport.com/2018/09/01/mark-your-calendar-the-era-of-helicopter-money-in-japan-has-a-date/