Economics
Draghi Tests Legal Limits Again With Claim of QE Flexibility
- Rule changes may be needed to make buying space if QE resumed
- Critics say quantitative easing illegally funds governments
Mario Draghi
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
Mario Draghi is once again testing the boundaries of the law in his efforts to lift the euro zone out of its economic malaise.
When the European Central Bank president promised last week to add monetary stimulus if the outlook doesn’t improve, he said one option is to resume large-scale purchases of government bonds. He also said self-imposed limits on how much debt the institution can buy could be raised.