Shadow ECB Council calls ECB’s package step in the right direction

At the meeting of the Shadow ECB Council on 26 June, 2014, there was a strong consensus that the measures decided by the ECB Governing Council in early June against the credit crunch and below target inflation were going in the right direction, but only modestly effective and insufficient. Almost all members believed that additional measure were needed now or in the near future. The Targeted Long Term Refinancing Operations (TLTRO) were almost unanimously considered the most important part of

the package, even though many members considered the targeting rather ineffective. Despite its high profile in the public debate, the negative rate for bank deposits at the ECB is considered to be of mostly symbolic relevance. As additional measures, members suggested various forms of helicopter money, purchases of public bonds and purchases of asset backed securities or foreign assets.

Minutes of the meeting on 26 June 2014.