ECB's Lautenschlaeger doubts effectiveness of bond-buying program

cep economist Matthias Kullas warns that programs also carries large risks

European Central Bank Executive Board member Sabine Lautenschlaeger in an interview with German business weekly Wirtschaftswoche called into question the effectiveness of the ECB's new bond-buying program. "Given the low interest rates in the eurozone I have doubts, whether the economic impact of the purchasing program will reach the desired level," Lautenschlaeger said. cep economist Matthias Kullas warns that the bond-buying program carries large risks. “The longer the phase of low interest rates will persist the larger the negative impact of the bond-buying program will become,” Kullas reasoned. “The ECB should, thus, end these extraordinary measures as soon as possible.”