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Draghi press conference: Responding to a question regarding Juergen Stark's description of the...

Draghi press conference: Responding to a question regarding Juergen Stark's description of the bank's balance sheet as "shocking," Draghi says the former ECB member has his facts wrong. To review: Stark resigned from the ECB not necessarily because of its expansionary policy, but because of the low-grade collateral the bank began accepting as security for loans.
Comments (1)
  • Tack
    , contributor
    Comments (12770) | Send Message
     
    When the ECB makes a "loan," it's a form of monetary expansion. It doesn't make any difference what the collateral is or even whether the money is ultimately paid back.
    8 Mar 2012, 09:31 AM Reply Like
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