Draghi: Scope of ABS Purchases Is ÷Rather Large

The video discusses the European Central Bank's (ECB) securities purchase program, which aims to expand the ECB's balance sheet by about a trillion euros. However, the program's specifics remain vague, with terms like 'sizable' being used instead of precise targets. The ECB is also stepping into a new supervisory role, focusing on regulatory harmonization across the euro area. Challenges include addressing a capital gap and ensuring credit supply to businesses. The ECB's efforts are seen as a significant integration step since the euro's introduction.

What are the expected volumes of asset-backed securities purchases over the two-year life of the program?

What are the implications of the ECB's new role in monetary policy as discussed in the text?

What is the significance of the integration step mentioned by Ben Walker in relation to the euro area?

How does the ECB plan to address the capital gap identified in the one-year balance sheet review?

What challenges does the ECB face in harmonizing regulations across the euro area?