FT’s Wolf And Trichet Talk About ECB

This Cool Video is from the Financial Times. Economics Editor Martin Wolf sits down with former ECB President Jean-Claude Trichet to discuss the ECB’s latest actions. What is striking about this five and a half minute discussion is Trichet’s emphasis on the continuity between his actions and Draghi’s. He also seemed to argue against the need for US-style QE. He notes that the ECB continues with its full allotment policy, which means banks can borrow unlimited liquidity from the ECB (provided they have acceptable collateral). He also points to very low sovereign interest rates, and concerns about potential bubbles. Trichet endorsed the focus on private assets (ABS and covered bonds).