cei. Berlin ⋅ The President of the European Central Bank (ECB), Mario Draghi, has complained in an interview with the “Handelsblatt” about too much bureaucracy and high taxes. The citizens paid in the euro zone from 45% to 55% of their income to the state. Be it in the US 35%, Japan 33%. The ECB chief also cites the example of a young entrepreneur who has to wait nine months for a permit to open his business.
Draghi sees higher risks
In addition, this would solve a license fee. Draghi asks what motivates the self-employed in such circumstances had to borrow money from the bank. The triad of reform weakness, bureaucracy and tax burden impedes recovery in Europe, Draghi said. He is certainly the bull’s eye when he declares that structural reforms in the euro zone would clearly too slow. Draghi and his colleagues take the governments for years in the duty, without the addressee could impress them big. On the reform deficits, monetary policy can not change anything. Nevertheless, stands on 22 January, a further relaxation for discussion. Cells then the Governing Council will discuss the purchase of government bonds.
Draghi holds the risk that the ECB does not fulfill its mandate of price stability, for more than half a year ago. The ECB’s price stability with an inflation rates of “below but close to 2%” identical. The inflation rate is loud Draghi on average since July 2014 at 0.3%. Although he considers the risk of deflation, or falling prices across the board, for low. But at the same time he warns: Keep inflation low for too long, it can happen that people put on a further fall in prices and expenditure verschöben. So far it is not yet, but one must work against this risk, he said.
Federal Bank chief Jens Weidmann, however, had pleaded a week ago for waiting. Inflation in his eyes also so low because countries like Spain using want to regain competitiveness by lower prices. Then there are the falling oil prices, the prized Weidmann as a small stimulus program. Therefore you must not sit on another, he said.
Fragile inflation expectations
Weidmann thus brings an attitude expressed, as is typical, at least in normal times for central bankers. To transient phenomena such as falling oil prices, monetary policy does not respond – at least as long as they do not influence on wage negotiations inflation over time. Central bankers so see through short-term price fluctuations “pass”. However, ECB chief economist Peter Praet has a different opinion, as discussed in the “Börsenzeitung” on Wednesday. In an environment where inflation might fall below 0% and inflation expectations are very fragile, one can not simply “look through”. Praet holds the risk of second-round effects also for higher than usual. It is this stock and not that of Weidmann, which should prevail in January in the Governing Council. Praet also made it clear that the only kind of government debt bonds are, where there is a significant market volume. In his view, the ECB therefore can not avoid the purchase of government bonds, if she decides to further easing.
The comments of the Governing exponents had their effect on the currency markets. On Friday, the euro fell to an intraday low of $ 1.2009 and its lowest level since June 2010. In addition, the dollar for a little over four years cost the first time one franc.
No comments:
Post a Comment