de Grauwe, Paul (2012) The European Central Bank has delegated its lender of last resort duty to panicky bankers who are the slaves of market sentiments. Pumping in over 1,000 billion Euros this way has not stabilized Europe’s sovereign debt markets. LSE European Politics and Policy (EUROPP) Blog (09 Mar 2012). Website.
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Abstract
Since December 2011 the European Central Bank (ECB) has pumped two waves of extra liquidity into the European banking system, in an effort to keep it afloat – and persuade backs to invest in sovereign debt. Yet Paul De Grauwe argues that these banks are still wracked with uncertainty, which may lead to further sell-offs of this debt – the very opposite of the ECB’s intent. The ECB could have avoided much of the crisis by being a lender of last resort in direct support of Eurozone governments with sovereign debt crises.
| Item Type: | Online resource (Website) |
|---|---|
| Official URL: | http://blogs.lse.ac.uk/europpblog/ |
| Additional Information: | © 2012 The Author |
| Divisions: | European Institute |
| Subjects: | H Social Sciences > HG Finance J Political Science > JN Political institutions (Europe) |
| Date Deposited: | 04 Apr 2012 13:24 |
| Last Modified: | 13 Sep 2024 18:03 |
| URI: | http://eprints.lse.ac.uk/id/eprint/42987 |
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