#ECB Sabine Lautenschläger giving a powerful account of the central banker view of the world #nextgencentralbanking but also claiming that PEPP is not monetary financing. She makes two arguments, which you will not be surprised I both find unconvincing! 👇
The first argument is that there is market discipline because member states need to pay interest rates on debt that the ECB buys and need to have sufficient ratings. However, interest is mostly paid back to MS as NCB dividend and Greece is included despite rating requirement.
Her second argument is that the objective is not to fund governments but rather price stability. However, (1) there is no contradiction: the objective of facilitating government spending is now itself a means to achieving price stability also (2) who knows! 
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