ECB Vice President: Lessons learned from the drawbacks of loose monetary policy

According to market reports, ECB Vice President Klaas Knot stated that the European Central Bank has learned lessons from its aggressive money-printing policy and will pay more attention to the side effects of loose monetary policy in the future. After curbing high inflation, the ECB is re-examining its long-term strategy and policy tool portfolio, including large-scale bond purchases and negative interest rate policies implemented over the past decade due to low inflation. Its 5 trillion euro (5.8 trillion dollar) money-printing operation (market-termed "quantitative easing/QE") has long been criticized for creating real estate and financial market bubbles and causing the ECB to face massive losses after raising interest rates. Knot pointed out that the "all tools" used in the past will remain in the toolbox, but he and his colleagues are now more aware of the drawbacks of these tools. He added that another lesson is that "sometimes starting a tool is easier than exiting it".