ECB President Mario Draghi thinks he is doing a swell job. Well, maybe, but if he and the rest of the ECB governing council really want to restore robust growth in Europe they should spend some time wrapping their minds around the following figure.
Now should President Draghi and the rest of the ECB governing council get stumped they can find the meaning of this figure here.
Draghi expanded the ECB balance sheet with assets worth about 5% of Eurozone GDP in ONE DAY. Let's give the guy some credit. A few more days like that and we might be getting somewhere.
ReplyDeleteThe Euro has behaved like Draghi has significantly eased policy too - dropped 10% since Nov 1st. I hadn't realised it was that dramatic until I checked. Straight line drop.
ReplyDeleteBritmouse & Anonymouse:
ReplyDeleteOkay, I need to give Draghi more credit for what he has accomplished so far given the political constraints he faces. He certainly is light years ahead of his predecessor.
My fear is the ECB will do enough to stabilize the crisis, but not enough to restore robust nominal spending. If so the slump will continue.