For the next two years, we are expecting inflation to pick up gradually; certainly, there is no sign of deflation. What is more, government bond purchases are not simply a monetary policy instrument like any other where the euro area is concerned. They entail risks which we believe are not outweighed by the expected effects.
At least the ECB Governing Council has agreed on a number of constraints to curb balance sheet risks, so that there will only be joint liability for a small portion of the programme. This will mitigate at least some of the problems which government bond purchases entail. However, this additional monetary policy easing could have undesired side-effects.