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This report brings out a clear picture of the issues pointed out as relevant to the European central bank bond-buying program. These aspects are appointment, inflation, growth, financial stability, fiscal policy and politics. Each of them plays a significant role in this context and influences the program from different angles. The program is strongly advocating for the protection of the euro, this is according to ECBs president Mario Draghi well this has received a lot of backing from euro-zone governments (De, P. 849).
The ECB bond-buying program is entirely an economic program, but it has faced political interruptions influencing its performance. The program is toiling to ensure that Europe remains relevant economically a midst the looming economic crisis in the world. There is a balance between inflation, growth, financial stability, creation of fiscal policy and politics. If we look at politics first of all the euro-zone governments back the ECB bond buying program to the extent of out voting the Bundesbank by the other 22 members. The case after being heard by a German court on allegations that the program went beyond its mandate clearly brought out the skeptism. On the other hand after the case was forwarded to the European court the judgment was in favor of the program.
The levels of inflation raise concern across the European economy as it is questionably low. According to comments from Janet Yellen (Fed chair) that the central bank could raise its rates has sparked worries across the region. The members prefer that another method is used to improve on the economy other than the former the speculation is that ECB is moving to quantitative easing. Economies are recovering and growing at the same time, but the process is as slow to the extent of insignificance. At the moment the euro zone has concentrated on deflation other than allowing the ECB to establish a stimulus for the recovery of the European economy (De, P. 845).
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It has its headquarters in Frankfurt, Germany. (ECB, n.d.)
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The difference between the two central banks is that the GCB has other decision making bodies which the ECB lacks including the operations committee and the national central banks. Those who argue in support of the GCB
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