Between Mario Draghi and quantitative easing lies an obstacle course.
The European Central Bank president’s signal that he’s considering large-scale bond purchases raises the question of how to surmount hurdles from political and legal challenges to conflicts with measures announced just three months ago. For policy makers meeting in Frankfurt this week, those factors add to an already complicated debate on how to shore up a euro-area economy that’s edging closer to deflation.
Banks including Nomura International Plc and UniCredit SpA say the odds of QE have increased since Draghi warned at last month’s high-profile central banking conference in Jackson Hole, Wyoming, that the outlook for prices is worsening. Few see such drastic action right away.
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