De Grauwe says Greek crisis has shaken OMT credibility
Decision not to use OMTs calls whole policy into question, he argues
The European Central Bank's (ECB) refusal to activate its outright monetary transaction (OMT) programme amid the Greek crisis may have fatally weakened the policy's credibility, economist Paul de Grauwe said today (July 9).
In remarks to a conference hosted by the Deutsche Bundesbank, de Grauwe, a professor of economics at the London School of Economics, warned the ECB's decision could have serious knock-on effects for European financial stability.
OMTs – outright purchases of the sovereign debt
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