February 7, 2014 Leave a comment
A German court may have just weakened European Central Bank President Mario Draghi’s most potent weapon in the battle to save the euro.
Back in July 2012, Draghi calmed panicked markets with a pledge to do “whatever it takes” to defend the euro and with a program, known as outright monetary transactions, to stabilize interest rates throughout the euro area by buying the bonds of financially distressed governments. The move was a game changer, shifting the crisis in Europe from acute to chronic. European markets have been relatively calm ever since. Read more of this post