ECB freezes markets: firm no to helicopter money – Wall Street Italian

ROME (WSI) – Not only the Fed, now also The ECB Now confuse the markets. While the minutes of the Federal Reserve dampen fears of an increase in rate in April, the ECB representatives comes a resounding no to the possible adoption of the ‘ helicopter money , or of ‘option of crediting of money distributed directly to the people to stimulate consumption. Speaking more simply, to the scenario of the money falling from the sky.

This was stated were both Peter Praet , chief economist of the ECB, which Vitor Constancio two of the ECB number as vice president of the institute, in separate locations.

Both have reassured investors on the will of the central bank to continue to do everything possible to revive the fundamentals of the economy and to stimulate a now super fugitive inflation (and commitment has been renewed by the number one Mario Draghi , in an editorial contained in the report on the 2015 Constancio today presented to the European Parliament).

However, both have said a resounding no to the option, of course, of ‘helicopter money. So Praet:

“The helicopter money is not on the table (the ECB), we are not discussing it.”

No also the Vice-President of the ECB Constancio that, during the hearing at the EU Parliament, responded dryly:

“ no, we are not considering anything like . It is not on the table in any form. “

He surprised especially the statement Praet, who probably will all’attenti been recalled by the ECB, since he, recently, had reported openness towards dell’helicopter money. It ‘true, however, that on that occasion the chief economist of the ECB was also pretty cautious, stressing:

“Our toolbox is not empty. There are many things we can do. In principle we can create money and distribute it to the people. The question is when to use this type of instrument [the helicopter drop, ed.], Really extreme. “

Among the other always Praet today said:

“the persistence of negative rates over time – two or three years – is something that becomes quite worrying when you consider the implications for models business “of banks.

in this regard, he confirmed, the ECB is” very well aware “of the possible negative effects of a policy rate below zero, and has appealed to governments and other authorities because they do their part in supporting economic growth.

“a return to higher structural growth and employment can not depend on monetary policy . “

that said, Praet has confirmed that the ECB is open to the adoption of new ideas, if necessary.

the contrasting statements have sparked movements on currency markets, with the euro climbed well above the $ 1.14 threshold, even in the wake of the dollar sales that have taken following the publication of the minutes of the Fed. However, ‘euro then retraced, remaining slightly below the $ 1.14 fee.