Draghi in drag

FRANKFURT—The European Central Bank opened the door to a dramatic escalation in its campaign to stimulate the eurozone’s stagnant economy early next year, signaling a new chapter in the bank’s fight against excessively weak inflation in the heart of Europe.

ECB President Mario Draghi said after the bank’s monthly meeting that officials discussed purchases of government bonds, known as quantitative easing or QE, but that they needed more time to gauge the effects of policies that they have already implemented while assessing how falling oil prices may affect the bank’s consumer-price outlook.

It´s like an Opera Buffa conducted by Mario!

Does he remotely think the steep drop in oil prices will “help” the price outlook, when inflation is now crawling near zero?

Mario, beware! Time is running out! No, it has already done so!

4 thoughts on “Draghi in drag

  1. Egads. Moreover, the point of macroeconomic policy is prosperity not a certain level of inflation. It may be robust growth results in moderate inflation and I believe that to be so. But what I seek is robust growth not moderate inflation. But then, I am only a small business guy, not a central banker.

  2. Pingback: Draghi in drag | The Corner

  3. Marcus, he is a clown. BTW, can you understand these words of Draghi? The volume of private assets bought until now has not been higher because… We will not trigger a Crowding out with privates investor! (At the end of press conference)

  4. This is soap opera central banking at its worst. I wonder when the ECB governors are going to take price stability seriously. It was such an emergency to tighten during the oil shock in 2008 and 2011, but deflation can wait…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.