QE was discussed. Some of our Governing Council members were in favour of doing more than I have just presented, and some were in favour of doing less. So our proposal strikes the middle of the road, but to answer your question, yes it was discussed. A broad asset purchase programme was discussed, and some Governors made clear that they would like to do more.
Draghi: On the first thing, the definition of QE is not really related to its size, but rather to its modalities. So QE is an outright purchase of assets. To give an example: rather than accepting these assets as collateral for lending, the ECB would outright purchase these assets. That’s QE. It would inject money into the system. Now, QE can be private sector asset-based, or also sovereign-sector, public sector asset-based, or both. The components of today’s measures are predominantly oriented to credit easing. However, it’s quite clear that we would buy outright ABS, the senior tranches, and the mezzanine tranches only if there is a guarantee. In other words, very much like what the Fed did a few years ago. So there is also this component.
… the purchase of bonds by the ECB. In so doing, it would take on the investment risk of investors, which the ECB is not authorised to do as this is a fiscal and not a monetary policy measure.