Draghi may have bitten off more than he can chew
Draghi has a recurring problem with expectations.
For years, he expected inflation to rise towards target and was repeatedly let down. In December, he stoked expectations for large-scale ECB action and then under-delivered. He blamed that on unrealistic market expectations.
Now, the WSJ reports that other ECB members aren't united on reviewing and increasing stimulus measures in March.
"While the council was unanimous on the need to review the bank's stimulus, it's important to understand that whether they will reconsider its size is still open to debate, according to people familiar with the matter. That likely means there is no unanimity on increasing stimulus in March," the WSJ reports, citing unnamed sources.
Another good read on Draghi and the ECB is from the FT, where Wolfgang Münchau details the lack of commitment to the ECB's 2% inflation target.
