Markets will test the ECB's resolve - Financial Times
The golden age of low inflation and gently sinking bond yields made many a humdrum investor latching on to basic stock market indices look like a genius. We are starting to see how it made central bankers look like superheroes too. Cast your mind back to July 2012. The eurozone's government bond market was in a mess, with Greece at the centre and ripples lapping at any other member state seen as fiscally shaky. Generally sober people, not given to hyperbole, were starting to wonder whether the common currency could survive the crisis intact. Enter Mario Draghi, the then still new-ish president of the European Central Bank. On a trip to London, he uttered a now famous phrase, saying that he and the ECB would do "whatever it takes" to save the euro. Those three little words were enough to douse the fire. Sure, the road ahead was bumpy, but the market trusted the former Goldman Sachs banker, who had a certain way with words and a knack for getting traders and investors to do...