The ECB Governing Council found itself forced to continuously ease financing conditions until central bank rates had fallen to zero – and even below. To be able to loosen financing conditions further still, the ECB rolled out an extensive programme of both corporate and government bond purchases. I have always been sceptical of government bond purchases, as I am sure you are aware.
Particularly in the euro area, which has a single monetary policy but where economic policymaking is decentralised and in the hands of the 19 different member states, they threaten to blur the lines between monetary and fiscal policy.