De Grauwe says Greek crisis has shaken OMT credibility

paul-de-grauwe
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

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