• Caused by unfounded fears of euro area break-up
  • Has enormous respect for Bundesbank; many of its concerns shared by members of governing council
  • ECB had a chance to say no to everything; chose to act
  • OMT to help stabilize many markets
  • Have seen real money flows back into euro area; investors recognizing policy progress
  • ECB actions in Germany’s interests, have been beneficial for Germany
  • Stable euro area supports a strong Germany; strong German economy supports a stable euro
  • OMT solely to support monetary policy transmission (cough, cough)
  • OMT comes with strong conditionality
  • Does not represent financing of governments
  • OMT does not solve underlying debt crisis; actions from governments must follow