They were probably the three most successful words in central-banking history. Two years ago, on 26 July 2012, the European Central Bank’s (ECB) president, Mario Draghi, pledged to do ‘whatever it takes’ to save the euro.
Back then, the situation in the eurozone could hardly have been worse. For two years the euro had been battered by the markets. Greece had gone bust and had to be bailed out by its neighbours. It was swiftly followed by Portugal and Ireland. Bond yields were rising alarmingly in Italy and Spain, at several points breaching the 6% level at which their [...]