Volker Wieland: ECB bond purchases are playing with fire (Unternehmermagazin)

In an opinion piece in "Unternehmermagazin", Prof. Volker Wieland explains why the pandemic emergency program PEPP of the European Central Bank (ECB) should remain temporary and which risks are threatening.

"A major risk of these bond purchases is that the central bank might be pushed permanently into government financing" writes Wieland. In this case, there would be fiscal dominance. Wieland therefore calls on "the ECB to present a strategy for ending the expansion of the central bank's balance sheet in an upswing and under the sign of rising inflation rates" in order to ultimately secure price stability and long-term growth.

Prof. Volker Wieland im "Unternehmermagazin" 3/4 2020:
"Käufe von Staatsanleihen durch die EZB: Spiel mit dem Feuer"