Draghi’s parting shot leaves next ECB boss with existential dilemma

Financial Post | Sep 13, 2019 at 2:36 PM
  • Christine Lagarde will face a momentous decision in her first year as European Central Bank President: give up on reviving inflation or give in to the temptation of bankrolling governments with neverending bond purchases.
  • The ECB pledged on Thursday to buy bonds “for as long as necessary” for inflation expectations in the euro zone to rise to its aim of just under 2 percent – a commitment that will haunt the central bank’s decision-makers long after current boss Mario Draghi steps down on Oct. 31.
  • This would see Frankfurt go down the route of the Bank of Japan (BoJ).
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  • Draghi's parting shot leaves next ECB boss with existential dilemma (Reuters: Sep 13, 2019 at 2:35 PM)