Has Europe escaped a taper tantrum?
In mid-2013, when the Federal Reserve started to reduce the rate at which it was buying bonds through its quantitative easing programme, bond investors panicked and a sharp sell off ensued. While the US bond market eventually realised the stimulus was no longer needed, that the US economy was expanding without it, and that tapering was the right decision by the then Fed chairman Ben Bernanke, it was a volatile six months.
Fast forward three years and European Central Bank (ECB) president Mario Draghi would have been very aware of that reaction in the US as he pondered when and how to start reducing the liquidity his central bank was injecting into its economy.
It was almost more important
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