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?

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

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

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

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

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