The European Central Bank saved 800,000 eurozone jobs during the recession! Just wait for ECB policymakers to start making the boast.
A research working paper, published this weekend on the Frankfurt institution’s website, calculates that its “non standard” measures resulted “in an unemployment rate about 0.5 percentage points lower than would have been the case following Lehman’s collapse in the absence of such measures”. The flow of bank loans to business and consumers had also been helped.
In fact the impact could have been even larger. Read more
Mario Draghi, Italy’s central bank governor, is profiling himself increasingly as a hardliner, especially when it comes to the banking system The ECB governing council member warned on Friday that national authorities needed to identify and act against “zombie banks” - and that the ECB’s exit strategy could not be held up by a few weak institutions dependent on its liquidity support. “The problem of addicted banks should not be addressed by the ECB but by financial authorities,” he said, according to Reuters.
“When you exit, and there is no doubt that we will exit, you want a monetary policy that is free of these constraints,” he added. Read more