ECB's Not Quite Ready to Risk a QE Taper Tantrum

The transcript discusses the European Central Bank's (ECB) challenges in managing inflation expectations and its quantitative easing (QE) exit strategy. It highlights the differing views within the ECB, the political pressures from upcoming elections, and the market's interpretation of potential tapering. The ECB's approach to asset purchases and Mario Draghi's communication strategy are also examined, emphasizing the need for careful messaging to avoid market misinterpretation.

What are the differing views of Hawks and Doves regarding long-term inflation expectations?

What is the significance of the upcoming German election for the ECB's policies?

What are the potential changes the ECB might consider if the program continues beyond March?

How does President Draghi's communication strategy affect market perceptions of ECB policies?

Why is there a concern about the ECB running out of available assets to buy?