De Grauwe says Greek crisis has shaken OMT credibility

Paul de Grauwe. Photo: Gestebier, CC BY-SA 4.0

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

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: