We need each other, but affection for each other brings you rare. The speech is the ratio of the government in Berlin to the European Central Bank (ECB) under Mario Draghi. This also applies to the forthcoming decision to buy government bonds. Germany is the largest investor with 18% of the central bank. To this extent the country would therefore just stand for losses. ECB chief Draghi knows that his institution is weakened if Germany does not mitträgt his policies. He is said to have lobbied ahead of the ECB meeting on Thursday in Berlin for his project therefore.
ECB is “anyway regardless»
This is confirmed only that the meeting with German Chancellor Angela Merkel last Wednesday has occurred. The ECB meet their decisions independently anyway, Merkel said on Monday on the topic. Nevertheless transpired, what it should be gone. Draghi has a problem: Bundesbank President Jens Weidmann is against purchases of government bonds, and also the German ECB Executive Board member Sabine Lautenschlager is said to have a negative attitude. So Draghi tries to get at least by the German government backing. When he in 2012 had declared that he would do everything necessary (“whatever it takes”) to save the euro, assured him Merkel later publicly support them.
But since 2012, two things have changed. The first is from a German perspective currently not the survival of the euro-zone. Therefore, about wanting found musings from government to go public, Greece no longer at all costs in the euro-zone maintained, the country should foutieren to the austerity measures. The second difference is that time in the Alternative for Germany (AFD). This party wins an ongoing voters. She opposes European bailouts and the pooling of risks in the euro zone. The purchase of government bonds would play into the hands of that party. In a few good memories is also a speech in Berlin Draghi in Jackson Hole, as he had quite bluntly demanded in August an active fiscal policy. Whether Draghi was for a departure on savings, Merkel said to have asked him then.
Draghi dilemma
The ECB now seems a step toward Berlin (and skeptics of other countries) to approach. So should be a part of their purchases on the account of the Fed: The Federal Reserve would therefore German government bonds, purchase the Banca d’Italia in Rome debt. The risks retained the respective central banks on their books, so that the German taxpayers would not have to pay the price if there were values losses on Italian papers.
The Dutch central bank chief, Klaas Knot, been a skeptic could live with it , The Bundesbank remains in its rejection, however, consistently. For them, these purchases generally undermine the prohibition of monetary financing State. In contrast, Berlin Draghi should put at least no further obstacles in the way in such a configuration the purchase program
Draghi but put in a dilemma: he Endangered lest the – already controversial – Effectiveness of “quantitative easing”. if the ECB decision is quasi-decentralized? This view is certainly the head of the Institut der deutschen Wirtschaft Köln, Michael Huether. As one of the few German economists he sees for the ECB action:. Inflation is significantly below the targeted 1.7% to 1.9% and inflation expectations go back steadily, he said Monday
Huether said, in Berlin on investment barriers. He presented a survey of German companies that casts doubt on the effect of monetary easing. Of 13 barriers to investment financing difficulties come until the very end. Worry German firms rather the global economic uncertainty, high energy costs through the energy transition and adjustment. In all this an even more expansionary stance of the ECB does not change.
No comments:
Post a Comment