This was the question the ECB had to answer about Estonia when it instituted its Public Sector Purchase Programme with the added stipulation that bonds would be bought proportionally to each member state’s share in the ECB’s capital key.
Continue reading “How to buy government bonds when there aren’t any”
The accusation by Professor Friedrich Heinemann of the ZEW institute that the ECB’s public sector purchase programme is deviating from the eurosystem’s capital key to the benefit of Southern European states must have hurt, because a week after Mario Draghi’s press conference the ECB communications office saw fit to bring up the issue again in a longish twitter thread:
Continue reading “Panic and misdirection on the ECB capital key”
Outside the Reservation 