ECB QE: Is Tapering Now a Good Idea?

The transcript discusses the European Central Bank's (ECB) quantitative easing (QE) program and its challenges, including market reactions and the difficulty of extending QE due to limited bond availability. It explores potential solutions like adjusting issuer limits or deviating from capital keys. The global impact of central bank actions, such as those by the ECB, Bank of Japan, and the Federal Reserve, on bond markets and debt sustainability in peripheral countries is also examined.

What assumptions are built into the ECB's staff forecasts regarding market reactions?

In what ways could the ECB's actions impact debt sustainability in peripheral countries?