Practice question · True or false
Draghi's "whatever it takes" speech in 2012 committed the ECB to unlimited bond purchases to save the euro, and it calmed markets almost immediately.
Hints
- The commitment was to unlimited intervention if needed.
- Its credibility meant it barely had to be used.
Show the answer
True
Why
Three words changed the crisis: "whatever it takes." The ECB's commitment to unlimited intervention (the OMT programme) was so credible that it barely had to be used, the announcement itself stabilised bond spreads.
Practise European Integration and the Euro
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