ECB is doing what it could have done during the banking crisis

Since the pandemic began, the European Central Bank has bought 80 per cent of all public debt issued in the eurozone. But if the ECB really wants to generate growth, it needs to kickstart wage inflation

20th December, 2020
ECB is doing what it could have done during the banking crisis
The European Central Bank headquarters in Frankfurt: since 2010, the ECB has not only loosened monetary policy, it has opened the floodgates. Photo: Getty

If I were to pick an institution of the year, it would be the European Central Bank. In 2020, it provided the funding conditions that allowed all eurozone member states to finance their fiscal response to the Covid-19 crisis. It did this by actively pushing down the cost of borrowing for all governments. If the ECB had not done this, there is no way that the Irish government would be able to afford to pay...

Subscribe from just €1 for the first month!


What's Included

With any subscription you will have access to

  • 971569B3-2C5E-4C45-B798-CEADE16987A8

    Unlimited multi-device access to our iPad, iPhone and Android Apps

  • 099C8662-C57C-42F2-9426-F2F90DF17C8F

    Unlimited access to our eReader library

  • 198AE43B-B9CF-4892-8769-D63C2104BA08

    Exclusive daily insight and opinion seven days a week

  • D8F37B78-25E4-4E4A-A376-4F5789B1564A

    Create alerts to never miss a subject that matters to you

  • B15F2521-37CD-4E02-B898-730A20D39F7F

    Get access to exclusive offers for subscribers on gifts and experiences

  • A564FE02-1AB8-4579-AF9D-BA32A2E5ACA7

    Get content from Business Post, Business Post Magazines, Connected, Tatler and Food & Wine

Share this post

Related Stories

Edel Coffey: The long, slow liberation of getting old

Columnists Edel Coffey 3 days ago

Nadine O’Regan: What is it that we do in nightclubs again?

Susan O’Keeffe: Boosters and regulations our only option

Massive expansion in size of state will continue – but how will this money-printing experiment end?

Columnists Dan O'Brien 1 week ago