ECB Buys the Wrong Kind of Bonds

As the euro region's economic backdrop worsens, the pressure on the European Central Bank to add government bonds to its shopping list is growing. 
ECB, still outflanked by Germany.

The European Central Bank has kicked off the effort to inflate its balance sheet by as much as 1 trillion euros ($1.3 trillion) by buying 1.7 billion euros of covered bonds. The mismatch between those two numbers illustrates the scale of the challenge; as the euro region's economy worsens, the pressure on the central bank to add government bonds to its shopping list is growing.

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