Spellman, James D. , (2016), “As European Central Bank Convenes, How Well Has Maestro Mario Performed?”, The European Institute, March2016
Euphoria in financial markets can burn off as fast as fireworks, an explosive flare-up and then, poof, gone. Many investors are wondering if the unprecedented initiatives by the European Central Bank, including negative interest rates, may be just like that, a cascade of fleeting embers. Others, though, think the restructuring underway as a consequence of “quantitative easing” has established the groundwork for sustainable recovery and growth within the European Union, albeit a trajectory of fits and starts buffeted by the global economy’s “gathering storm.” Before the ECB meeting on March 9 and 10 in Frankfurt, what does the report card show for performance in the five benchmarks for success that the maestro, ECB head Mario Draghi, himself and others set? Has QE staunched the hemorrhaging? Prevented deflation by inducing inflation? Lowered the euro’s value to boost exports? Stimulated corporate borrowing and, thereby, growth, by lowering interest rates? And, eased banks’ burden of public debt and non-performing loans by purchasing public and private assets?
Relevant Posts
- Ligthart, Nick, Mody, Ashoka, (2016) ,”The ECB can make a difference if deeds match words”, Voxeu, 14 April
- Fratzscher, Marcel, Gropp, Reint , Kotz, Hans-Helmut, Krahnen, Jan , Odendahl, Christian, Weder Di Mauro, Beatrice, Wolff, Guntram B., (2016), “Mere criticism of the ECB is no solution”, Bruegel, 10 April