It’s too soon to say whether Draghi is just thinking out loud when he talks about the ECB buying securities backed by small-medium business loans. But he probably wouldn’t be taking about it in public if he didn’t have at least some support on the board. So while it probably won’t be enough, it is a huge step for the ECB considering the political headwinds coming from the more “conservative” elements in Europe. I wish him luck as Eurozone easing will likely have the effect of also easing monetary conditions elsewhere by taking tight money pressure off other capital markets.
While thinking about this, I remembered a song that I think appropriately describes the move from hardcore inflation targeting…. Print, baby, print!