ECB’s response to the crisis was probably the best of any major central bank. Their action to provide unlimited liquidity was certainly the main factor that stopped the “end of the world ” scenario that was taking hold of the financial world.
They resisted calls to lower rates to zero, didn’t fall into the QE trap when the fed and the boe followed the experience of the boj and yet they managed much lower rates down the curve than both of them.
The ECB is now saying that liquidity measures will be taken out (gradually and without moving rates soon), that’s a major move and it has to be taken seriously !
