Monday, August 25, 2014

ECB capitulate and does not require eurozone countries to save at the expense of growth – Bulletin

ECB capitulate and does not require eurozone countries to save at the expense of growth – Bulletin

President ECB Mario Draghi during a meeting of heads of central banks in the « Jackson Hole” did not rule out soon rejection of austerity measures, which was the basis of economic policy after the 2008 crisis Ideally direction of monetary and fiscal policy should be the same, but you need to take into account the specific conditions and limitations, acknowledged Draghi: inflation expectations at a minimum level and in many countries stagnation, so that national governments can weaken the tight fiscal policy in order to solve the problems of their own countries more successfully. Need to stimulate demand, Draghi urged.

A very important statement, in fact it is a turning point in the rhetoric of the ECB, said Philip Goodin of Barclays.

the euro area economy in the II quarter showed a null result, the major economies ?? Germany and Italy ?? in the II quarter plunged ( on the decline 0,2%).

Geopolitical risks and crisis Ukraine may impede recovery and forecasts that economic growth will strengthen in the second half of the year, is unlikely to come true, acknowledged the Bundesbank. Inflation was 0.3% in August, Unemployment rate steady at 11,5%.

In May, the European Commission predicted that Eurozone GDP will grow this by 1.2% in the next ?? 1.7%, the economy out of recession unit came in II quarter of 2013 г.

Programme budget savings do not give returns: the political pressure on the ECB on the part of politicians has grown, says Chris Weafer of Macro Advisory.

Statement Draghi ?? it is a signal to the upcoming launch of quantitative easing, analysts agree. In December, the ECB will publish a program of asset purchases to 1 trillion euros, Citigroup analysts predict. After the words followed by actions, analysts agree JPMorgan: what is important is how to react to it Draghi heads of major central banks of the world and how they will act. The Federal Reserve is going to cut a program of cheap money by the end of the year.

LikeTweet

No comments:

Post a Comment