Benchmark

Deutsche Bank Thinks Draghi’s Gone Over to the ‘Dark Side’

Chief economist David Folkerts-Landau says ECB has entered new dimension of moral hazard

The logo for Deutsche Bank AG, continental Europe's biggest bank is seen on the company's headquarters in Frankfurt, Germany, on Wednesday, July 10, 2013. The Frankfurt-based Bundesbank said last week that economic growth will slow this quarter after a strong expansion in the three months through June.

Photographer: Krisztian Bocsi/Bloomberg
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Grim mutterings about European Central Bank policy can probably be heard echoing around the skyscrapers of Frankfurt's financial district on any given day: Low interest rates, tough supervision, no bonds left out there to buy, etcetera.

David Folkerts-Landau, chief economist of Deutsche Bank AG has taken those concerns to a whole new level, and has just published an excoriating attack on ECB policy. The research note is entitled “The Dark Sides of QE.” Here’s a taste: