Actuality | World Economy

Draghi: sulla fine del QE "non è detta l'ultima parola"
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Mario DraghiReporting 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

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Actuality | World Economy

Austerity? Nonsense, word of the ECB
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Of Roberto Pecchioli
Austerity? Nonsense, word of the ECB
Source: Heretically
Consulting foreign newspapers broadens your horizon. Far from our home journalism, busy rummaging through CVs or fueling fascist hunts - now it's the Minister of the Family's turn Lorenzo Fontana – we can read interesting news carefully hidden from us. An example is the European Central Bank report entitled “On the sources of economic cycles. Implications for DSGE models.” The acronym means General Equilibrium of Stochastic Dynamics. In the initiatory jargon of economists, stochastic stands for probabilistic, and talking about probable scenarios is already a nice bath of humility on the part of the snooty masters of histograms and mathematical models. Economists are very good at explaining in retrospect how things did not go as they had predicted. Il report of the ECB follows the opposite path, a commendable example of realism and concrete research. Read More

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Actuality | Policy

Lega-M5S government, Here is the contract and list of ministers
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SalviniReport Wall Street Italia
Of Alessandra Caparello
ROMA (WSI) – More than a draft agreement, for some it is seen as a gauntlet to the European Union capable of sending the financial markets into a tailspin. Let's talk about the contract that Lega e Five Star Movement have developed and which they will soon bring to the attention of the Head of State, thus giving the green light to the new government.
Compared to the version leaked byHuffington Post in the new contract, thorny references disappear, such as the creation of an exit mechanism from the euro and the request to Mario Draghi of the ECB to cancel i 250 billions of debt for Italy.
However, some key points remain that could damage relations with Brussels. Not to mention that the coverage to be found for all these measures will be considerable and the budget constraints do not allow much room for manoeuvre.
Some points of the programmatic design still require some reflection, like them flat tax rates, the proposal to establish a regional Cie, the reform of the prescription, a law on mosques, up to the commitment to suspend executive works and re-discuss the Tav project in its entirety. Read More

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