Economics
ECB Should Weigh Yield-Curve Control, Hernandez de Cos Says
- Bank of Spain governor says strategy is ‘worth exploring’
- De Cos cautions that ECB isn’t controlling yield curve now
Pablo Hernandez de Cos
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
European Central Bank policy maker Pablo Hernandez de Cos says the institution should consider a policy to actively manage governments’ borrowing costs.
“Yield-curve control is an option worth exploring,” Hernandez de Cos said in an interview with the publication Central Banking. The strategy, which has been previously aired by colleagues and is used by the Bank of Japan and the Reserve Bank of Australia, typically entails policy makers setting yield targets on longer-term bonds.