Draghi Confronts Crux of QE Effect in Countdown to Policy Exit
- Stock-versus-flow debate is key to how to end bond purchases
- ECB chief to attend Jackson Hole before Sept. 7 policy meeting
Draghi Watching Inflation as Euro-Area Growth Picks Up
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European Central Bank policy makers are wondering how much stimulus quantitative easing offers once bond-buying stops.
Their assessment will likely influence the ECB’s strategy for ending its asset-purchase program. Keen to avoid any steps that inadvertently tighten financial conditions, policy makers can’t ignore that their open-ended QE design so far means investors are focused more on the monthly flow of acquisitions than the stock of debt accumulated in the past three years.