ECB's Big Bang Is Impressive, but More Is Needed

The European Central Bank did today what no major central bank has done outside a major financial crisis: It pushed the rate on bank deposits to minus 0.1 percent. Impressive, but not quite enough.
Mario Draghi can't fix Europe's economy by himself.

After dropping hints for several weeks, the European Central Bank made history today by doing what no major central bank has done outside a major financial crisis: It pushed the rate on bank deposits to minus 0.1 percent. The move was part of a big package in which the ECB also dropped its main lending rate to 0.15 percent and eased up on collateral rules. Moreover, ECB President Mario Draghi signaled the central bank's willingness to do more, should conditions warrant it.

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