What does 2021 hold for the ECB?

Former officials reflect on AIT, the strategy review, QE options and new tools

European Central Bank, Frankfurt
European Central Bank, Frankfurt

As the Covid-19 vaccine offers the eurozone various ways toward an improved economic scenario in 2021, what should the European Central Bank focus on to foster the recovery?

At its latest policy meeting on December 10, the governing council extended the Pandemic Emergency Purchase Programme (PEPP) by €500 billion ($610 billion) to €1.85 trillion. And it said net purchases will continue until March 2022.

However, it also added “the envelope need not be used in full” if favourable financing

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