- Says US and UK also had much wider deficits
- Says the question is if QE impact is different in isolation
- QE will be within EU treaties and only take place in secondary markets
- QE would be no state financing, unlike US
As you know I was expecting much more from Draghi on QE yesterday and one of the reasons may be that the ECB are finding it tough to create a program that will work across Europe. Nowotny highlights the fact that QE in single countries was a success but making a success across 18 countries is a whole different ball game.
The longer we go without getting the soup and nuts of it from the ECB,the more the market may infer that they’re running into problems developing a plan.
