He earned his Ph. The numbers you show are about the money base, not the money stock. There has been a very strong increase in the money base, not in the money stock. Put differently the large increase in money base has not filtered through in the real economy and has not led to an increase in the money stock, creating zero inflation pressure. The reason that the unpresedented QE of ECB has not filtered through the real economy and not seen any inflationary pressueres yet is mainly because the banks in the Eurozone are in a terrible shape see Spain more recently.
Simply put they are not lending! If the M3 is still below the ECB target of 4. A further QE easing in the Eurozone, could also force the Euro to depreciate which could amplify the infationary pressures in the eurozone. The ECB is aware of the potential threat of inflation and, hence, ingoring it is rather naive.
Search for:. Blog Admin May 29th, About the author Blog Admin. Pingback: The ECB is hampered by a lack of democratic legitimacy, despite being responsible for policies hugely consequential for the lives of European citizens. Pingback: The ECB should refrain from printing more money to solve the Eurozone crisis, EU officials should instead focus their resources on re-engaging the private sector within European economies.
Leave a Reply Cancel reply. Related Posts John Doukas. With a rising current account surplus, Germany has benefitted the most from the adoption of the Euro. But that won't mean the end of stimulus. When the emergency pandemic program ends, Barclays expects the ECB to "significantly" increase bond purchases under the Asset Purchase Program.
That's on top of hundreds of billions due for the remainder of this year. That means the era of super-big stimulus is set to continue. Things are looking pretty dire for Chinese tech right now, especially firms that have been considering overseas listings as a way to raise money. The chill created by tensions, both within China's borders and with the United States, could bring overseas investment in Chinese tech to a grinding halt.
Investors are already rattled. And since shares in Didi crashed this month after its IPO in New York — a result of the massive scrutiny the ride-hailing company has faced from Chinese regulators and American lawmakers — a wave of other Chinese firms have reportedly backed off of plans to go public in the United States.
He added that a "serious pause" on such listings could be in effect until US-China relations improve. Remember: US listings have long been an important way for Chinese companies to raise foreign capital. Elon Musk wants bitcoin to succeed. He frequently uses his massive platform on Twitter to post about various digital assets, and often causes wild swings in their prices.
Markets Data. Market Moguls. Expert Views. Technicals Technical Chart. Commodities Views News. Forex Forex News. Currency Converter. Rate Story. Font Size Abc Small. Abc Medium. Abc Large. Reuters Investors had started to doubt the ECB's commitment after bond purchase volumes actually decreased in the last two weeks, confounding expectations it would use its much-emphasised "flexibility" to run up market activity. Related ECB to accelerate bond buys on rates fears. FRANKFURT: The European Central Bank said on Thursday it was ready to accelerate money-printing to keep a lid on euro zone borrowing costs, signalling to sceptical markets it was determined to lay the foundation for a solid economic recovery.
ECB president Christine Lagarde. Contracting economy Extended virus lockdowns mean the economy is on course to contract again this quarter, Ms Lagarde said. More from The Irish Times Construction. Home energy upgrades are now more important than ever. The Dublin start-up making the future better with an appreciation for innovation.
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