Mayer: Draghi Must Convince Markets ECB Is on Right Track

The video discusses the challenges faced by Draghi, including addressing Brexit, market distortions, and convincing markets of the ECB's ability to manage inflation. It debates the effectiveness of negative interest rates and their unintended consequences, such as pressure on banks and pension liabilities. The ECB's stimulus strategy is examined, highlighting the difficulty in exiting the current approach and potential extensions of asset purchases. Political and market constraints, such as the capital key and limited bond supply, are also explored, with suggestions of following the BoJ's lead in buying stocks.

In what ways could the ECB consider extending its asset purchase program?

What might be the implications of the ECB changing its capital key?