Asmussen: The ECB will start buying peripheral bonds again to eliminate redenomination risk premia

An extremely important interview with ECB board member Joerg Asmussen was carried in the Frankfurter Rundschau recently. Below is a translation with key bits highlighted. Afterward I will interpret his remarks in light of ongoing speculation about ECB policy. The most important part is his explanation of redenomination risk premia and what the ECB is prepared to do to eliminate them.

ECB Director Joerg Asmussen campaigns for Greece's remaining in the euro zone and defends bond purchases by th...


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