Dragons replica to Germany: “The ECB does not obey the politicians.” Rates to the minimum even after the end of the Qe – Il Sole 24 Ore

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This article was published April 21, 2016 at 13:55.
the last change is the April 21, 2016 at 19:52.

the ECB continues on its way despite criticism raining down from Berlin. Today the institute headed by Mario Draghi announced that it has begun “expansion” of the monthly program of securities purchases to 80 billion euro, has left rates unchanged at historic lows and especially reiterated that remain at current levels “, or even lower “than the end of the securities purchase program, expected in March 2017.

This as part of a recovery that continues but is held back by global uncertainties” persistent “and that inflation” could return negative in the coming months “before you begin growing again later this year.

The ECB President has in fact played in defense, but was not spared counterattacks, such as when he recalled that “in the last four years,” the ECB in its monetary policy has been the only one to support the Eurozone growth – an obvious criticism of governments – or when he pointed out the substantial gains made by the funds thanks to its purchases of government bonds.

“the ECB works throughout the Eurozone , not only for Germany ‘
There was a lot of waiting in particular for the answers that Draghi would give the German political establishment, headed by Finance Minister Schaeuble, who accused him of damaging savers Germans with prolonged zero interest rate policy, and even to have indirectly favored the affirmation of the Eurosceptic party Alternative for Germany. The answer came: the ECB summits, said Draghi, obey “the law” and not to politicians, adding that “the Governing Council unanimously defends the independence of the central bank and the adequacy” of its current monetary policy. The ECB has made it clear, has a mandate “for the entire euro zone,” not only for Germany. During their recent meeting in Washington for meetings of the IMF, has pointed Draghi, he had with Schaeuble clarification “positive, sincere, soft-spoken and very friendly.” “Schaeuble then returned on his words, ‘noted Dragons, with denials and clarifications” that are certainly welcome. ”

No ‘helicopter money’ coming soon
Those who criticize the ECB for its policy of negative interest rates, he said, “he has also received substantial capital gains from stocks we buy. We must resist the temptation to criticize “this choice all the time, however, admitting that” it is evident that the pension and insurance funds are heavily affected by negative rates. ” Draghi also denied that the bank has ever discussed the hypothesis of “helicopter money”, ie direct funding to families, because it would be full of “difficulties” including legal order. Just this hypothesis had undergone a veritable barrage of criticism in Germany.

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