Francesco Papadia: ECB to Slow QE Pace in 2018

The transcript discusses the European Central Bank's (ECB) strategies to address bond scarcity and maintain market confidence through substantial easing. It highlights the ECB's inflation targets, potential risks, and alternative measures like intervening in inflation derivatives and extending purchasing programs. The discussion also covers the impact on banks and the yield curve, emphasizing the ECB's focus on economic health over bank profits. Finally, it touches on tapering expectations and the ECB's future plans, noting the Bundesbank's acceptance of current measures as necessary.

What was the ECB's primary goal in their communication with the market?

• To address the scarcity of bonds

• To increase interest rates

• To stop the bond purchasing program

• To reduce inflation to 1%

Which of the following measures was suggested to keep the ECB's program alive?

• Increasing interest rates

• Intervening in the market for inflation derivatives

• Reducing the bond purchasing program

• Stopping the easing measures

What was the ECB's stance on the impact of their measures on bank profits?

• Bank profits were the only objective

• Bank profits were irrelevant

• Bank profits were not a clear objective

• Bank profits were a primary objective

What was the ECB's approach to the issue of tapering?

• They planned to taper in 2017

• They did not discuss tapering

• They planned to increase the pace of the program

• They decided to stop the program immediately

What was the ECB's concern regarding the transmission of their measures to the real economy?

• The measures were not filtering through

• The measures were only benefiting banks

• The measures were too effective

• The measures were causing inflation