How a Taper By the ECB Might Work

The video discusses the European Central Bank's (ECB) strategies in response to market uncertainties and inflation concerns. It explores the potential impact of Black Rock's buying behavior and the ECB's tapering approach. The ECB aims to avoid abrupt changes and maintain accommodation while addressing deflation fears. The discussion also covers the significance of upcoming staff projections and their influence on ECB's policy decisions, particularly in relation to the euro's strength and inflation targets.

In what ways might the euro exchange rate affect the ECB's policy decisions?

What implications do the staff projections have for the ECB's inflation targets?