ECB May Have To Take Over From The Fed: Societe Generale
The European Central Bank (ECB) may have to take over the Federal Reserve’s role in providing liquidity if it is going to protect the Eurozone’s budding recovery, say Societe Generale analysts Patrick Legland and Daniel Fermon. The introduction of forward guidance may be just the first step necessary to keep bond rates low, maintain liquidity, and prevent the euro from appreciating too quickly.
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