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6 tweets,
2 min read
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Read it. Then read between the lines.
Highlight #1: "bleak", "alarming" market expectations cannot be ignored along with other signals.
"Central banks should never ignore market signals. They shouldn’t follow them blindly either."
"Central banks should never ignore market signals. They shouldn’t follow them blindly either."
Highlight #2: no limits within our mandate.
"Whatever the instrument, we’ll calibrate it to what’s needed for the eurozone economy."
"Whatever the instrument, we’ll calibrate it to what’s needed for the eurozone economy."
This is a powerful statement from Coeuré: "the [QE] limits are ours". Starting with supranationals, agencies, etc. 
Highlight #3: if we need to cut because of the Fed, then be it, along with tiering.
"So, if the conclusion were that cutting rates is the best option [...] We would have to consider whether a tiering system is needed."
"So, if the conclusion were that cutting rates is the best option [...] We would have to consider whether a tiering system is needed."
Highlight #4: fiscal policy is the only possible endgame, or rates will go even lower. Germany, you've been warned!
