ECB’s Nowotny: Next step for ECB is to shrink balance sheet, not buy more assets

Additional headlines crossing the wires from the Austrian Central Bank Head and European Central Bank (ECB) Governing Council member are found below.

The new normal for monetary policy is characterized by longer lags in inflation.

Risk of waiting to normalize policy would create the risk of it becoming pro-cyclical.

Trade wars have negative effects for all involved.

Negative effects of a trade war could be on the exchange rate side.

But it is difficult to predict what impact on the exchange rate that would be.

New normal will be bigger central bank balance sheets than before the financial crisis.

Next step for ECB is to shrink ECB balance sheet by not buying more assets.