Draghi: “Forces of the global economy conspire to keep inflation” – The Republic

MILAN – In the global economy there are several “forces that conspire to keep inflation low,” which can “slow the return of inflation to our “target values. It ‘as said the president of the ECB, Mario Draghi, who has a mandate to achieve a dynamic of prices close to + 2%, while the figure is from the Eurozone area code: inflation stood at 0, 4% in January, while going up by + 0.2% on average in 2015. it is not a coincidence that the ECB bulletin, released today, indicates the possibility that inflation turns negative in the coming months, while the recovery of ‘Eurozone continues thanks to private consumption, but holding back exports.

for these reasons, on the other hand, the ECB is preparing to iniettere new measures to support the economy and financial markets: after the press conference beginning of the year, analysts expect in an almost unanimous new stimuli from Frankfurt. Citing, at a conference in Frankfurt, topics such as cyclical weakening of oil and raw materials and demographic changes, Draghi said: “These forces may slow the return of inflation to our target values. But there are no grounds on which should lead to a permanently lower inflation. “

” what matters is that the central banks are acting within their mandates to implement them. in the euro area, this can create challenges different from those raised in other jurisdictions. But these challenges can be mitigated – said Dragons -. And do not justify inaction. ” A push because the ECB to do more has also added the Central Bank of Japan (BoJ), which has cut rates on deposits in the negative surprise: now the Japanese banks pay the BoJ to hold additional liquidity deposited at the central bank , within a framework which should favor putting into circulation of money. It is a way that the ECB has taken some time, but the accommodating attitude of the Japanese counterpart institution would indicate that the Dragons can not help but to put back the hands of the purse strings.

” we can be no doubt that, if we decided to adopt policies even more accommodative, the risk of side effects will not grind to a halt, “remarked fact Draghi, who held a reading on the need for action against deflation in an event organized the Bundesbank, the nest of ‘crows’ led by the German governor Jens Weidmann that during the mandate of the Italian governor sought to curb the expansionary policies of the ECB. “We have always in mind the need to limit distortions caused by our policies – said Dragons -. But the priority is the goal of price stability. And ‘This is the meaning of the principle of monetary dominance that is registered in the Treaty which makes credible monetary policy. “

Dragons came back to beat even a close button at the Italian Treasury, which is pushing for the establishment of a common guarantee on bank deposits in the euro area, as a fundamental part of the Union banking. For Draghi, eurozone “there is still no agreement on the third pillar of Banking Union, the guarantee on deposits, which is a key element to a true single currency. For this reason, the Commission’s proposal to create a European guarantee scheme deposits is welcome. on the one hand – he pointed out – sets the ambitious goal of creating a true European system of protection of depositors, “which” supports the creation of an internal market for deposits in which their availability is guaranteed regardless of the jurisdiction with a level of confidence in the stores the same everywhere. ” On the other hand, the proposal to Brussels “is realistic and provides a number of safeguards against the ‘moral hazard’ so that the sharing of risks does not become a distribution of risks.”

Topics:

bce

inflation

Starring:

mario dragons