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The ECB has purchased financial assets for the equivalent of 25,000 billion Swedish kronor since 2015 in order to lower long-term interest rates and avoid deflation, but the firm buyback at the turn of the year
. , even outside the economic pages. Wednesday 's message was barely noticeable
This despite the fact that Italy was ruled by a government for a month, whose representatives openly threatened to pull out of the euro and that it' s the same. she now recalls the collapse of the single currency. That sounds dramatic, but ECB chief Mario Draghi's press conference this week was more of a sleep affair – just like a central bank director's press conference usually takes place when circumstances permit. The euro area purchasing index for industry and services has reached its highest level since 2011 last year, and although the recovery has been much longer than that of the states On the contrary: without the controversial stimulus measures of the central bank, the crisis of the early 2010s was aggravated and the wheels that were still spinning were still melted.
Nevertheless, the ECB is often seen as the very foundation of an undemocratic and elitist economic system that has made rich money managers richer at the expense of the poor Greeks.
It's strange. It's actually the ECB that saved what was left of the Greek economy when interest rates rebounded in the summer of 2012 and Mario Draghi concluded that the central bank was ready to "do everything" to contain them. guarantees that kept interest rates on Italian government securities after the populist government joined in early June.
The fact is Mario Draghi has a particularly unpleasant job. Not only because he is responsible for the monetary and financial conditions of one of the largest economies in the world, but because, unlike his colleagues in the United States, China and Japan, he lacks Tax assistance. – Both are criticized for taking great liberties, but in fact they fill a gap left by politicians.
The eurozone is not a perfect creation away from. Reforms are needed. French President Emmanuel Macron has suggested several, but they run easily across the Rhine.
Progress has been made. The reason is a banking union for which the ECB plays a key role. Recently, 14 French and German economists have proposed the introduction of a joint deposit guarantee, which would significantly reduce the risk of extension in countries with weak banking system. however. A common budget should be put in place and the ECB's inflation target should be reviewed.
None of these capabilities are within the reach of the central bank. The ECB, like the Riksbank is an independent institution with a democratically delegated mandate.
Technocrats simply do what they need because politicians do not do what they should
Politicians do just what they need because the Politicians do not do what they should.
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