Volker Wieland views ECB bond-buying program critically ("Focus")

After the December meeting of the European Central Bank (ECB) new possibilities will open up to banks. Money received from the ECB can be parked again at the ECB, thus enabling the banks to make a profit, as the news magazine "Focus" reports. According to Prof. Volker Wieland this measure is not necessary.

On December 8, 2016, the ECB adjusted the parameters of its asset purchase programme (APP), permitting purchases of securities under the APP with a yield to maturity below the interest rate on the ECB’s deposit facility to the extent necessary. In Wieland's opinion, the expansion of the APP "is not necessary at all". However, according to Wieland, it does not violate monetary principles.

Focus: "Der Draghi-Trick - oder wie die EZB den Banken Geld schenkt"
(The Draghi trick - how the ECB gives money to the banks as a gift"