Italians Play Russian Roulette With ECB
By using QE as a political football, the populists might help the central bank make up its mind on easing off bond purchases.
False accusations.
Photographer: DANIEL ROLAND/AFPItaly's anti-establishment parties have only just formed a government but they’re already busy looking for excuses. This week, they pointed the finger at the European Central Bank, blaming it for buying too few Italian bonds during the market turmoil that accompanied their rise to power.
The accusation doesn’t stand up to scrutiny and may be self-defeating. The ECB has been given free rein to run its bond-buying program after emphasizing that it’s a purely technical tool for hitting its inflation target. Any accusations of covert political motives will merely strengthen the voice of those who want quantitative easing to end as soon as possible.