Interview with ECB President Mario Draghi: 'We Couldn't Just Sit Back and Do Nothing'

[sysop]

In an interview with SPIEGEL, President of the European Central Bank Mario Draghi defends his euro crisis policies and promises to keep prices stable. He also says he's on Germany's side when it comes to encouraging reforms in the euro zone.

http://www.spiegel.de/international/...-a-863971.html

[gladiool]

ECB policy :
- No liquidities by loans wanted, as for high interest rates to loans. Other measures not touched, not even legal measures to enlarge liquidites by issuance and reproduction banknotes,the latter not thwarted by legal articles.
- Payed back debt obligations to last possessor will not relieve debts if the last was not the debt-loaden issuer.
- Stable inflation of 2 % a year delivers 10% in 5 years
and could not be paired to stabe wages. Once a year a price lowering of 2 % will solve the problem.

[HoratioJones]

Actually, Draghi is already doing nothing.

Normally, a central bank would push down short-term interest rates to stimulate growth. The ECB has done this only for the countries that don't need help - like Germany.

The ECB needs to push down short rates for Italy and Spain. This maneuver is nothing about financing a state; it's about the normal application of monetary stimulus to an economy in recession. It's not an action that requires ratification by the EU or the ESF.

This inaction is one reason that the austerity policies are not working in these countries. These poor countries are stuck with both tight fiscal AND tight monetary policies. No wonder they are going down the drain.

Draghi should do his job or else step aside. It is time for the ECB to make history by doing what is right to make the euro function. If Draghi doesn't have the guts to do it, then the the history will be the failure of the euro.