http://www.dlacalle.com/the-ecb-must-stop-its-qe-program-now-here-is-why/
The growth figures of the European economy are good, and
manufacturing indices are expanding. But they were already in expansion
before QE was launched. The European manufacturing PMI is at six-year
highs, the expected growth for 2017 will be 1.7% and 1.8% for 2018,
unemployment will fall to 9.4% and 8.9% in 2017 and 2018 respectively,
and growth of investment and credit is close to 2.5%. However, inflation
by decree has been a failure, rising in energy and food prices and poor
in core underlying inflation, a consequence of accumulated overcapacity
and poor productivity.
You could say that these good growth
figures are because of the ECB policy, but Europe was already expanding
and recovering before they bought a single bond. Europe has been
improving for five years. But that is not the debate. Even if we assume,
for a moment, that the ECB policy has “worked” -despite 1.2 trillion
euro of excess liquidity and high-risk bonds at the lowest rates in
thirty-five years- the ECB must stop the monetary laughing gas urgently,
for several reasons:
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