Wellink: The ECB giveth but the ECB also taketh away

Dutch central banker Wellink discusses the sterilization of the ECB’s bond purchases. He explains the bank is buying bonds on the one hand but draining reserves with the other. This should keep inflation from breaking out, he says.

He does not mention that the ECB has begun to lend money for terms up to 6-months to banks again, however. That is the ECB’s preferred method of quantitative ease…