World Bank’s Malpass lambasts ECB

By Phil Thornton
27 Feb 2020

The head of the World Bank has launched an outspoken attack on the European Central Bank’s monetary policy, saying its mass purchases of long-dated sovereign bonds was distorting markets and failed to provide short-term finance.

David Malpass said its core strategy of using quantitative easing (QE) to stimulate the economy was “not workable”.

In unusually direct and non-technical language he said buying long-duration government assets was leading to a “major distortion” of markets, because the central bank purchases subsidised the least productive assets ...

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