The EU financial sector does not need to be eased, there is plenty of liquidity in the banks.
If the Swiss National Bank can’t stand the heat about to emerge from the European Central Bank’s monetary kitchen, Mario Draghi must be cooking something explosive, right?
Put yourself in the shoes of Jens Weidmann, president of the German Bundesbank and chief critic of a policy of quantitative easing (QE) for the eurozone.
The euro sank to a nine-year low against the dollar on Monday as the beleagured eurozone, dogged by fears of deflation and a Greek exit from the currency bloc, was throw into sharp contrast with a soaring US economy.
The European Central Bank is widely expected to begin buying the sovereign debt of member countries to stimulate the euro zone economy, but the effects of such quantitative easing would be "negligible," Southwest Securities Managing Director Mark Grant said Monday.
The president of the European Central Bank (ECB) has raised expectations that he will turn on the money-printing presses to fight deflation early in the new year, sending the euro to its lowest level against the dollar in four and a half years.
The eurozone economy stumbled in November, according to a closely watched survey which has raised fears that falling demand from Russia and China will plunge the currency area into renewed recession in the new year.
The European Central Bank might like to update its website – specifically, its educational video to teach teenagers about the importance of keeping prices in check.
It says something about the diminished expectations that the reaction to the latest growth figures for Germany and France was one of relief.