Successive years of uncertainties intensified by events beyond the control of central banks have increasingly blurred visibility. Central banks have to constantly chart a safe way forward in this world of unexpected twists and turns of events.
This flexibility makes the PEPP a highly effective instrument to ensure the smooth transmission of our monetary policy and to avoid fragmentation across euro area countries. The ECB granted a waiver which allows it to purchase Greek bonds under the PEPP. What does this move signal to the markets?