Best contribution ECB can make is stable prices ECB’s primary goal is stable prices Financial stability is secondary ECB goal Signs of stabilization in debt markets Economic activity to recover gradually Inflation remains in check Inflation to drop below 2% next year Sees downside risks for economy (me too) 3 year loans alleviated deleveraging pressures Remains to be seen if loans flow through to economy Loans didn’t solve problems, only bought time Now up to governments to do their part ECB remains fully faithful to its’ mandate ECB will act when needed ECB non-standard measures temporary ECB raised rates last year ... (full story)