inflation

Reporting of Wall Street Italia
Of Alessandra Caparello
Inflation is on the right track but “there is still a need for significant accommodative measures”. Go back to talking about Quantitative easing the number one of the European Central Bank Mario Draghi during his speech at the Sintra Economic Forum in Portugal where his colleagues from the Fed and the Bank of Japan, respectively Jerome Powell and Haruhiko Kuroda.
For Draghi thelast word regarding the end of Qe.

"In the 2017 Eurozone growth was higher than we had expected: growth on annual basis recorded in the fourth quarter was the strongest in a decade. But in the 2018 growth has slowed and, until now, it was lower than our expectations (…) Regarding the ECB's monetary policy, as indicated last week the progress made so far towards a sustained adjustment in inflation has been substantial. The expected end of our net asset purchases in December this year is subject to new macro data confirming the medium-term outlook for inflationinflation. Furthermore, the asset purchase program can always be used if contingent events arise that we cannot see at the moment.".

Draghi underlined how confidence in the return of inflation towards the long-term objective has strengthened significantly over the last few months., but uncertainty permeates theeconomic outlook.

“With long-term inflation expectations well anchored, the underlying strength ofEuropean economy and the continued large degree of monetary accommodation allow us to be confident that inflation will converge towards our objective and that this convergence can be maintained even after a gradual winding down of our program of net asset purchases.".

Therefore, says Draghi, the "monetary policy in the Eurozone must remain patient, persistent and prudent”. Read More

Argentina turns to the IMF and people take to the streets Report Wall Street Italia
Of Alessandra Caparello
A financial debacle that reopens old wounds for Argentines in recent days with the national currency, the weight, under the threat of hyperinflation and a president Mauricio Macri which to save the economy and spare its people from a new financial crisis is asking for help from the International Monetary Fund.
Although the central bank of Argentina has decided for a huge increase in the rates three times since 27 April, issandoli al 40%, the peso continued to collapse and the president had to do resort to International Monetary Fund, looking for a standby agreement for a loan of at least 30 billions of dollars (although other sources even talking about 50 billion). Which means on standby? Which wouldn't be cashed in right away, but used if the situation worsens further. Read More