And that is not something the ECB will do or can do. Let’s talk about what the ECB can do for a moment here, because the markets are now very much looking at China, its impact on Germany and wider Europe and the fact that the Federal Reserve has delayed its interest rate increase.
Moreover, the crisis countries of the Monetary Union have introduced essential corrections in wages and prices in order to improve their competitiveness. The ECB’s bond purchase programme is also supposed to stimulate bank lending. How can that come about when, as is currently the case in the euro area, interest rates are already low?