Draghi: the Q and will continue for as long as necessary – Il Sole 24 Ore

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This article was published May 14, 2015 at 17:26.
The last change is the 14 May 2015 at 19:57.

FRANKFURT – from our correspondent Alessandro Merli
monetary policy of the European Central Bank, including unconventional measures such as buying government securities, is proving to be more effective than many observers had expected and has not yet had the feared impact on financial stability, said ECB President Mario Draghi, in Washington. “If a long period of low interest rates inevitably leads to a misallocation of resources, this does not necessarily lead to threaten the financial stability”, said Draghi, noting that so far there is little evidence of “widespread financial imbalances.”

The ECB President, in a speech to the IMF after the former director Michel Camdessus, also reiterated that monetary policy launched last year and in particular the so-called Quantitative Easing, or Qe, ” It will be implemented fully and, in any case, until we see a sustained adjustment of the path of inflation. ” The Eurozone inflation at 0% in April, remains very distant goal of being “below, but close to 2%”, but some economists have argued that the ECB may suspend the buying of securities before maturity fixed, in September 2016, a possibility that Draghi has again rejected.

“After nearly seven years of a series of debilitating crisis – said the central banker – businesses and families are very hesitant to take economic risks. This will take some time before we can declare victory and our stimulus of monetary policy will continue for as long as necessary to achieve our goal on an ongoing basis. “

Many of the critics have raised the possibility that Qe This feed speculative bubbles. Dragons, while ensuring that the ECB will keep the situation under constant monitoring, noted that for now there are only “tentative signs” of increases in property prices and credit growth, two elements normally associated with the formation of bubbles.

Draghi reiterated also that the effectiveness of the Q and will be enhanced if accompanied by other measures, including the constant monitoring of the health of the banks, now made by the ECB itself, together with the national central banks, through the mechanism single supervisory, and structural reforms to increase the growth potential of economies.

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