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This article was published on 23 January 2015 to 09:16 hours.
The last modified on 23 January 2015 to 15:02 hours.
“The quantitative easing is an open program, open ended.” The Governor of the Bank of Italy Ignazio Visco said in an interview with Bloomberg TV that the “bazooka” of relaxing quantitative over a trillion here in a year and a half unlined yesterday in Frankfurt will continue to run until it is in view of the milestone midterm wanted for inflation, that is “close to 2%”: Thus, if necessary, the ECB will also go beyond the month of September 2016, to beat the risk of deflation.
A deflation that “there is at this time,” says the governor Italian but that should be avoided at all costs because “certainly, there is a good deflation.” On Qe, then Visco cites Ben Bernanke: “It’s something that has not yet understood how it works in theory but in practice certainly work.” Therefore, promotion with honors of monetary policy decided on Thursday in Frankfurt, in the awareness that “the EU is not a fiscal union and that the process that leads to a full risk sharing is, in fact, a process. As for the euro exchange rate, fell to its lowest in 15 years, the governor said that “the change is not an objective for monetary policy but it is certainly an important transmission channel because the rebalancing of the portfolio will increase the offer money. ”
Finally, in the interview Visco speaks of Italy that is coming out of one of the toughest recessions in history, and that last year was a tough year but it is seeing signs of improvement on the front manufacturing and exports. “Now, he adds, the problem is how to regain the trust to ensure the revival of consumption and investment and employment permits to share.” The Governor promotes the progress made on the labor market, makes it clear that the reform of the popular aims to improve governance and transparency “and the operation of large banks locally. It explains that on other grounds of economic policy there is still much to do but “we’re going in the right direction.”
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