The real problem with ECB QE is that it doesn't work as advertised. In order for asset purchases to raise inflation you need a combination of (speaking simply) the quantity theory of money, the multiplier model of bank lending, and loanable funds, all of which are bunk. 1/- In my opinion the real reason why the ECB needed QE was that in 2014 banks were signalling virtue by repaying TLTROs early, thereby draining themselves of reserve which was showing in erratic eonia rates 2/-

The Eurogroup are masters of the press release. The output of yesterday's meeting has 23 points, the first 3 of which are "whereases", the next 8 stuff already done, often by other institutions, and the last one says "will pursue the work needed" 1/- consilium.europa.eu/en/press/press… point 12: we're ready to step up, waffle waffle 2/- 🧇🧇🧇

Cada medida ... supone un coste importante y difícil de prever, ... nadie sabe cuánto durará la crisis. Calviño representa la parte ... ortodoxa y cercana a las empresas y siempre ha tenido choques con otros ministros ..., no solo con los de Unidas Podemos elpais.com/espana/2020-03… El pacto de estabilidad y crecimiento va a terminar siendo el pacto de crecimiento de las infecciones y de la estabilidad de los cementerios

Pro tip: the Federal Funds Rate is not the cost of capital ft.com/content/46c4b1… “'How can slightly less than a dozen people meeting eight times a year decide what the cost of capital should be versus some kind of organically, market supply determined rate?' Ms Shelton said." Pro tip: the central bank's most basic mission is to ensure the payment clearing system functions. Setting interest rates is a side effect of it. ft.com/content/46c4b1… "If appointed to the board, she would be “asking tough questions” about its most basic mission, she said." 2/-