Furthermore, I am concerned about setting the wrong incentives for governments if we were to re-start the APP and buy further government bonds. What is needed are structural reforms to foster sustainable growth. And you always have to ask yourself what kind of impact restarting the APP would bring. We are already in negative yield territory for many government bonds.
We also need to consider how big the purchase universe is when keeping the current purchase limits. And keeping the limits is for me of utmost importance to address the risk of monetary financing. There has been a lot in ECB communications of late, and elsewhere, about the perceived need for fiscal authorities to do their part to boost growth and inflation.