Daily Archives: October 26, 2011

Ralph Atkins

UPDATE (17.30 FRANKFURT) I now have the official English version, according to which Mr Draghi said the ECB ”is preventing, with its use of non-standard measures, the malfunctioning of the money and financial markets from obstructing the monetary transmission mechansism”. In that context, he mentioned bank liquidity support – but not bond buying. He added “All the non-standard measures adopted in response to the financial strains are, by their nature, temporary”. Sounds as if it was scripted by the ECB in Frankfurt.

Mario Draghi has his own way of promoting central bank opaqueness: speaking in Italian. I suppose that’s allowed when in Rome – where he spoke this morning - but it does not help understanding of his thinking ahead of his move to Frankfurt next week to become European Central Bank president.

The news agencies have picked up his commitment to continuing the ECB’s “non-standard” measures. “The Eurosystem is determined, with its non-conventional measures to prevent malfunctioning in the money and financial markets creating an obstacle to monetary transmission,” Reuters quotes him as saying, and suggests this was a signal that he will continue the ECB’s controversial government bond buying programme. Maybe, but pending the arrival of an English text, I am not so sure.  Read more

Claire Jones

St Peter's Square. Image by Getty.

St Peter's Square. Image by Getty.

Tired of all the talk of currency wars, the Holy See wants peace.

The Vatican this week called for G-20 leaders, meeting in Cannes early next month, to set up a global central bank. The Pontifical Council for Justice and Peace’s statement is only available in Italian but here’s an article from the Telegraph:

Such an authority would have “universal jurisdiction” over governments’ economic strategies.

Existing financial situations such as the World Bank and International Monetary Fund were outdated and no longer able to deal with the scale of the global financial crisis, which had exposed “selfishness, greed and the hoarding of goods on a grand scale”.

The global financial system was riddled with injustice and failure to address that would lead to “growing hostility and even violence”, which would undermine democracy.

The church’s call for action is not dissimilar to a point made by some of the world’s leading economists. Read more