In March 2010, as investors fled Greek debt, European policymakers hesitated to deploy the resources at their disposal in sufficient quantity or with a sufficiently clear end in mind. Monetary policy remained gestural – and sometimes gestured in the wrong direction. Patrick Honohan is an economics professor who was governor of the Central Bank of Ireland from 2009 to 2015. It could unleash its Outright Monetary Programme (“whatever it takes”) of asset purchases if Italy were to apply for an International Monetary Fund-style programme. There will be no excuse for repeating the errors of such a recent past.

Source: The Irish Times March 18, 2020 05:20 UTC