In the final year of former President Draghi’s term, the ECB started giving up on pursuing macro-economic stabilization. The unwillingness to keep nominal growth on track at a stable trend pace, which has worsened under President Lagarde, will become institutionalized after the conclusion of the ‘strategic review’. Thus, in response to the Coronavirus outbreak, we expect the ECB to stick with what is known as ‘credit easing.’

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