Abstract
Writing in 2011, Paul De Grauwe noted the contrast between the alacrity of the ECB in providing liquidity in the banking crisis of 2008–09 and its reluctance to do so in the subsequent sovereign debt crisis:
Things were very different when the sovereign debt crisis erupted in 2010. This time the ECB was gripped by hesitation. A stop-and-go policy ensued in which it provided liquidity in the government bond markets at some moments and withdrew it at others. When the crisis hit Spain and Italy in July 2011, the ECB was compelled again to provide liquidity in the government bond markets. (De Grauwe, 2011a)
The ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough. (Mario Draghi, July 2012)
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Miller, M., Zhang, L. (2014). Saving the Euro: Self-fulfilling Crisis and the “Draghi Put”. In: Stiglitz, J.E., Heymann, D. (eds) Life After Debt. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137411488_14
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DOI: https://doi.org/10.1057/9781137411488_14
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