Draghi’s euro-exit redenomination hedge

Marcello Minenna says new ECB policy effectively hedges QE bond purchases

Marcello Minenna is professor of financial mathematics at Bocconi University and head of the quantitative analysis unit at Italy’s markets regulator, Consob.

On January 20, in response to an official question raised by Italian members of the European Parliament, the president of the European Central Bank (ECB), Mario Draghi, admitted for the first time that in the event of a hypothetical exit of a country from the eurozone, the Target2 balances of the central banks involved should be settled i