"Risk can neither be created or destroyed, and repressing volatility in one place accentuates it in another."
"In addition, in order to maintain stability in financial markets, the Bank has enhanced the U.S. dollar funds-supplying operations, actively purchased exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs), and conducted further active purchases of Japanese government bonds (JGBs) and treasury discount bills (T-Bills)."
Takeway & Excerpt
What caused the housing boom and bust of the early 2000s? Capital inflows from emerging markets to developed economies can contribute to the formation of bubbles in asset prices. Those bubbles encourage the accumulation of debt, and the deleveraging of that debt exacerbates the decline in economic activity when the bubble bursts.
A subtle change in the ECB's reading of underlying inflation measures, the announcement of the strategy review and an owl brooch on Christine Lagarde’s jacket... this was the sum of the excitement at today’s ECB meeting