ECB's Mersch Warns of Diminishing Returns in Central Bank Action
- Says ECB's PSPP program has risk that has been mitigated
- ECB seeks `optimal speed,' Executive Board member says
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Central banks’ extraordinary measures to spur growth may eventually show diminishing returns while a key part of the European Central Bank’s quantitative easing program carries a “certain risk” that has been mitigated, ECB Executive Board member Yves Mersch said.
Mersch, in a speech to the Ambrosetti Workshop in Cernobbio Italy, on Saturday, reviewed the various policy instruments that the ECB and other central banks have used to aid economic recovery.