Tiering Is Smart for ECB, But Doesn't Matter Much, Says Peterson Institute's Posen

The transcript discusses the European Central Bank's (ECB) decision-making process, focusing on forward guidance, tearing, and negative interest rates. It explores the ECB's approach to symmetric inflation targeting and the influence of the Federal Reserve on the euro and market volatility. The discussion also covers the ECB's potential easing measures and asset purchase strategies, including the consideration of ETFs and corporate bonds.

What are the potential risks associated with the ECB reversing course or raising rates prematurely?

In what ways does the speaker suggest the ECB could enhance its effectiveness in the current economic climate?