“Qe until serving”: the promise of Mario Draghi – businesspeople.it

Mario Draghi, ECB president, went on a visit to the IMF International @ Getty Images

European Central Bank insist on quantitative easing to the rise in inflation. He assured the President of the Eurotower about the program of buying government bonds aimed to return to 2% of the price rise. The occasion of the speech was the visit from the International Monetary Fund , rocked by the resignation of the head of research Oliver Blanchard. Dismissing speculation, Draghi pointed out how the measures taken by the ECB have had positive effect on interest rates for households and businesses. “The unconventional actions have so far proved to be powerful, more of as many observers had anticipated,” said the governor of the Central Bank from Washington. “While a period of low interest rates will inevitably result in some misallocation of local resources, there should be consequences that would threaten global financial stability and there are, for now, signs of imbalances Financial under development. ”

REFORMS. Even with rates at 0.05% from September, the monetary policy should remain accommodative to aid recovery. Although the demand for United is always to promote reforms, “structural reforms that increase the confidence in the economic outlook and encouraging entrepreneurs to capitalize on the conditions of financing extremely accommodating today, make our policy proportionately much more powerful, “said Draghi again.

RISK. remains alive, however, the risk that the minimum rates could have the ‘ side effects. According to the # 1 of the ECB, the Qe could also stimulate an increase in compensatory savings , in a society that tends to ‘ aging population, to compensate the low returns offered by savings, gradually you get closer to retirement age. “And ‘necessary’, he concluded,” to closely monitor the effects of the Q and the distribution of wealth, so that has an effect on consumption and investment, “stimulating. “However, is also interest of investors that production back to its potential without undue delay to restart growth.”

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