The European Central Bank will actively manage its balance sheet and is able to implement more stimulus if required to stave off the threat of deflation in the euro area, ECB President Mario Draghi said. “With the purchasing programs, we are starting a transition from a monetary-policy framework predominately founded on passive provision of central bank credit to a more active and controlled management of our balance sheet,” Draghi said in his quarterly testimony to European lawmakers in Brussels today. The ECB president’s comments come after he signaled this month that he intends to expand the ECB’s balance sheet by ... (full story)