A bogeyman is back, and it responds to the seemingly unremarkable name “tapering.”
It was the word the U.S. central bank, the Federal Reserve, used to refer to the phase-out of its bond-buying program a few years ago.
When then Fed Chairman Ben Bernanke announced, in May 2013, that the Fed was going to allow its bond purchases to expire, it triggered a medium-sized earthquake in the markets.
Now the markets – this time in Europe – are fearful of tapering once again.
When Mario Draghi appears before the press after the latest meeting of the governing council of the European Central Bank on Thursday, he will have some questions to answer.