World Bank’s Malpass lambasts ECB

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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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