They forget that banks are listed on the stock exchange too.” But Constâncio disagrees that things are going well enough to already start tapering off quantative easing – inflation expectations are too low for that.
Until inflation comes sustainably close to 2%, the ECB will continue to intervene in the financial markets, with the attendant risks such as rapid asset price increases and the disadvantage of low returns for pension funds. The sharp depreciation of the euro is another side effect. Does Constâncio think that will result in a global currency war?