Draghi Weighs QE Compromise Showcasing Unity Shortfall
QE is supposed to boost inflation and stimulate growth by pushing investors into riskier assets, including outside the euro area and so weakening the currency.
Photographer: Simon Dawson/Bloomberg, Photo Illustration by Tom HallThis article is for subscribers only.
Mario Draghi is weighing how much a compromise on euro-area stimulus would reveal about the currency bloc’s fault lines.
As the European Central Bank president and his Executive Board sit down today to formulate a bond-buying proposal to fend off deflation, one option is to ring-fence the risks by country. While that may win over some of Draghi’s opponents when the Governing Council meets on Jan. 22, it might also shine a spotlight on the lack of unity within the union.