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Lorenzo Bini Smaghi is a former Executive Board member of the European Central Bank.
The use of the Securities Markets Program in 2010 initially worked for Bini Smaghi, who was still a member of the European Central Bank's executive.
He doesn't think we need to give all the details of how you will act, but we have to be able to send messages to the markets. You can't be too predictable in the markets.
When the transmission of monetary policy is being hindered by speculation and markets are wrong to bet against the euro area, the European Central Bank has a lot of flexibility, according to Jean- Claude Trichet.
At an emergency meeting in June, they pledged to create a new anti-fragmentation tool. There are still differences over tactics and design of the Transmission Protection Mechanism, according to a report.
Bini Smaghi said getting the instrument right is important to make sure the ECB can continue with its plans to raise interest rates. He supports the European Central Bank's plan to raise its benchmark interest rate by 25 basis points at its July 21 meeting and expects it to increase it by 50 basis points in the fall.
He said that the environment would be appropriate for a recovery if the euro area's central bank focused on inflation.
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