Devil may be in the details on European Central Bank bond-buying
A court opinion issued on Wednesday makes it all but certain that the European Central Bank will announce a major round of economic stimulus next week, after months of contentious internal debate.
But much mystery remains about how the bank will deploy quantitative easing — buying government bonds on a large scale to pump money into the economy.
The central bank still needs to decide the amount and the mix of bonds, including whether riskier nations such as Greece should be avoided. They must also navigate thorny political issues, like the concerns of Germany, whose opposition to E.C.B. bond-buying has long been the main impediment to action.
It is a moment of truth for the central bank and a test of whether its president, Mario Draghi, can finesse the details while leaving no doubt about his institution’s resolve to reinvigorate the eurozone economy.
If it is not big…
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