Thursday, 6 September 2012

Cochrane on ECB Bond-Buying Plan

Here's professor John Cochrane's (a monetarist from the University of Chicago) take on the OMT presented today by ECB's Draghi. Beware he did not have all the details provided today as his comments are based on yesterday's leaked information, for example, the OMT program is not supposed to increase the monetary base (see here). Nonetheless, his comments shed light on many of the issues involved with this new sovereign debt purchasing program .

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