For direct duel between the President of the European Central Bank (ECB), Mario Draghi, and President of the German Bundesbank, Jens Weidmann, it is on Friday at the “European Banking Congress” did not come to Frankfurt. With voltage versions of the two main speakers were expected, but many had hoped the two would their differences in this context unsubscribe publicly. But while Draghi spoke very well on monetary policy, Weidmann is focused in his presentation on the topic of banking regulation.
Draghi took his appearance as an opportunity to bring its determination to combat deflationary tendencies expressed. Decidedly he defended the ECB’s policy, especially its purchase programs for assets, and made the audience realize that the Fed’s hands are far from being bound at a base rate of almost 0%. Rather, he stressed that the Governing Council had also decided to go further, should it be necessary, and also explicitly state bonds will earn if the inflation outlook continued to deteriorate. He stated that the measures taken by the ECB are unconventional, but not unorthodox. They were taken in similar situations by other central banks, which he probably still a little dig at the Bundesbank allowed himself the accused is often because of their opposition to government bond purchases, they generally have trouble with unorthodox monetary policy. Anyway, the sideswipe remained unanswered.
Finance Minister Wolfgang Schäuble, who outlined his vision of a future Europe on the podium with a lot of mischief and fun way, did not want to quarrel between Bundesbank and ECB position take. Much more he gave to understand that such discussions were not to his taste in the public. He vehemently argued for a change in the European treaties, even if he is well aware of the difficulties of this undertaking. Until that happens – and to a time horizon he would not specify – he will not block the policy in Europe but. Rather, he seeks to shape and reform projects but at the same time stand up for treaty changes.
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