Remember the saying it takes two to tango? In the case of the European Central Bank, that phrase could prove rather fitting for its President Mario Draghi, who will need the tacit support of German Chancellor Angela Merkel if he wants to introduce new unconventional policies, especially during an election year. What… Read more >
‘Abenomics’ has taken Europe by storm. Don’t get me wrong, policymakers on the old continent expected the new Bank of Japan’s governor Haruhiko Kuroda to act, but they certainly did not think he would unleash a tsunami on financial markets. As we have argued here last week, the new unprecedented bond-buying program… Read more >
Days after agreeing to a punitive bailout, the citizens of Cyprus are getting ready to witness the end of a flawed business model. Successfully preventing a sovereign default and euro exit was just phase one of the controversial rescue operation. Cyprus is now bracing itself for phase two: reinventing its economy. It… Read more >
Global central banks were back in the spotlight on Thursday, as the Bank of Japan (BOJ) finally decided to emulate the U.S. approach to the economic crisis. By engaging in unprecedented aggressive monetary easing, Tokyo is throwing the kitchen sink at deflation. This time, neither the Federal Reserve (FED) nor the European… Read more >
He’s done it again. Mario Draghi, the head of the European Central Bank, has worked his magic and achieved exactly what he set out to do. This time, he talked down the euro. Draghi barely mentioned the currency in his prepared remarks in the press conference after the regular meeting of the… Read more >
While most commentators who listened to Mario Draghi’s first press conference in 2013 focused on the upbeat tone of the remarks made by the ECB’s president, I prefer to focus on his stubborn refusal to say that the worst is over for Europe. “It’s too early to claim success,” Draghi said, “the… Read more >
The last week of August has opened with the usual salvo of news about the debt crisis in Europe. Of course, American public opinion will turn its attention towards the Republican National Convention, a much anticipated speech by the Chairman of the Federal Reserve Ben Bernanke, and a strengthening storm off the… Read more >
On Thursday, September 6, 2012, Dr. Tim H. Stuchtey, Executive Director of the Brandenburg Institute for Society and Security (BIGS), and Alexander Privitera, Director of the AICGS Business & Economics Program, hosted a roundtable discussion regarding long-term causes for the euro crisis and recent events for its solution. Earlier that day, the European Central Bank’s (ECB) President Mario Draghi announced that it would buy secondary bonds from the peripheral states of the euro zone. This policy is largely considered to give policy-makers some time for the necessary reforms to save the euro. Referred to as the “big bazooka,” this monetary policy initiative ensures that the ECB has unlimited rescuing capabilities to bail out struggling economies within the euro zone.
The President of the European Central Bank Mario Draghi disappointed financial markets on Thursday when he announced that the ECB will wait to restart its bond buying program. However, a closer look at what Draghi said during his press conference should encourage both investors anxious for quick action and skeptics in Germany alike. Draghi has a plan, but he is still resisting the temptation to let politicians off the hook.
The President of the European Central Bank (ECB) was in heavily fortified Barcelona, Spain today. I believe it is the first time in the history of the ECB that it has had to be shielded from the general public and, in particular, protesters, in such a dramatic way. The police presence was… Read more >