One of Mario Draghi’s first acts after becoming European Central Bank president on November 1 was to make clear the limitations of the ECB’s government-bond-buying programme. It would be temporary, limited and aimed purely at restoring the functioning of markets, he said at his first press conference. The ECB would not act as “lender of last resort” to governments, he said – helping reassure sceptical Germans. The impression he gave was that the ECB had serious misgivings about setting the wrong incentives for governments and would wind down the programme as soon as possible.
So how is he doing? Read more