Volker Wieland asks ECB to explain monetary policy in an underständable way (Deutschlandfunk)

In May, the Federal Constitutional Court ruled that the European Central Bank (ECB) was to demonstrate the proportionality of its bond purchases under the PSPP program. According to Prof. Volker Wieland, this is a step into the right direction toward more transparency. The ECB should explain monetary policy in a more comprehensible manner, Wieland said in an interview with the German radio program "Deutschlandfunk".

"Why can the ECB not include such a leaflet in summary form in its regular strategy, i.e. in its regular statements? Yes, today's decision makes sense, it has a certain effect and it is necessary, and the side effects are there, we have recognised them, but at the moment they are acceptable."

According to Wieland, such statements are also helpful for the Corona aid program PEPP, especially with regard to an exit strategy. "These are now very, very high bond holdings that are being built up now, they should be reinvested for a longer period of time. Here too, further differentiation and an explanation of how this is to be reduced would be useful," said Wieland.

Deutschlandfunk: "Die Bundesbank und ihr Verhältnis zur EZB"