23 Oct 2014

The European Central Bank's attempts to stave off deflation

From Nine To Noon, 9:25 am on 23 October 2014

The European Central Bank has changed tack by buying covered bonds, including Greek and Cypriot bank loans with junk ratings. The move was announced by the ECB president Mario Draghi last month, saying it would stimulate the flow of credit to businesses. But it has been heavily criticised by some economists who say it will turn the ECB into a bad bank and could destroy the euro currency.