Frankel, J. (2014) “The ECB Should Do QE, Mario? Buy US Bonds, Not Eurobonds“, Άρθρο Γνώμης, VoxEU Organisation, 24 Μαρτίου.
The Eurozone needs to further ease monetary policy because under the current low inflation and high unemployment periphery countries need to suffer painful deflation. However, the ECB faces challenges other central banks do not face. This column proposes a way to overcome some of these hurdles. It argues that the ECB should buy US treasury securities, lowering the foreign exchange value of the euro. That would be the best way to restore the export sector of the periphery countries.
The ECB should further ease monetary policy. Inflation at 0.8% across the Eurozone is below the target of ‘close to 2%’, and unemployment in most countries is still high. Under the current conditions, it is hard for the periphery countries to bring their costs the rest of the way back down to internationally competitive levels as they need to do. If inflation is below 1% Eurozone-wide, then the periphery countries have to suffer painful deflation.
Σχετικές αναρτήσεις:
- Barysch, K., (2014), “Europe’s Top-Down Myopia”, Project Syndicate, 22 Ιανουαρίου.
- Συνέντευξη του Paul De Grauwe, Καθηγητή στο London School of Economics, στον Υπεύθυνο του Παρατηρητηρίου για την Κρίση, Δημήτρη Κατσίκα, 15 Ιουλίου 2013.
- Hacker, B., (2013), “Why The ‘Genuine EMU’ Will Not Be a Fiscal Union”, Social Europe Journal, 02 Ιανουαρίου.