Daily Management Review

Draghi defends the ECB’s monetary policy


06/27/2017


Head of the European Central Bank (ECB), Mario Draghi, spoke in favor of incentive measures, saying that young people will benefit from the revival of growth in the euro area, reports Bloomberg.



World Economic Forum
World Economic Forum
The soft monetary policy of the ECB helped to ease the problem of inequality in the region, which is "extremely destabilizing," Draghi said, speaking at the School of Economics and Management (ISEG) at the University of Lisbon.

"The main cause of inequality is unemployment," Head of the ECB said. "If politics is struggling with unemployment, it is also struggling with inequality."

Unemployment among young people "is declining, but it is still very high," Draghi added. "Young people who have found jobs thanks to our policy, I'm sure, do not object [to the ECB's strategy]", he said.

Draghi also appealed to those who criticize the ECB for low interest rates unprofitable for investors. According to him, the best solution for the regulator is to keep the incentives until it restores the price stability that is necessary for a healthy economy.

"Do not forget that the economy is contributing to the savings," Draghi said. "Interest rates should remain low so that the growth rate will recover."

Against the backdrop of the recovery of the euro area economy, some politicians insist that the ECB start planning to wind up the € 2.3 trillion bond buying program at the end of this year. Nevertheless, the Board of Governors of the ECB did not even discuss the strategy of folding QE at a meeting this month. At the same time, Draghi noted that many of the jobs created recently provided only temporary or part-time employment, and called for patience.

source: bloomberg.com






Science & Technology

Motorola’s New Patent Will Self-Heal A Cracked Smartphone Screen

Auto Parts Out Of Wood Is What Japan Is Looking At Making

Security Firm Claims Hotel Guests Across Europe Were Targeted By Russia-Linked Hackers

World’s First Genetically-Modified Animal To Enter Food Supply Is Salmon

In The Future, UBS Analyst Says, Multiple Planes Could Be Operated From The Ground By Today’s Pilots

Will Germany save diesel?

How China became a pioneer of the solar industry

CNBC: Intel leaves the wearable gadgets market

Oculus Rift falls in price…again

Ukraine Police Official Says Likely Cover For Malware Installation Was Global Cyber Attack: Reuters

World Politics

World & Politics

Russia surpasses Saudi Arabia in oil production

China counts losses from sanctions against the DPRK

OCP Group Vs South African Courts: A storm is brewing on international maritime trade

Britain to conduct a study on labor migration after Brexit

CNN: Rex Tillerson may leave the post of US Secretary of State

Its South China Sea Territory Being Protected By Indonesia From 'Foreign' Threats

A Swarm-Like Attack From North Korea Could ‘Overwhelm’ South Korea's THAAD Missile Shield

Powerty in Italy tripled in 10 years