15-11-2013
ECB, Only a Direct Intervention on Euro Can Save From Deflation
| Few days ago Praet suggested ECB could enter into ouright quantitative easing but under present rules that could only happen under Omt. No state in need, particularly Italy would ever want to activate the mechanism due to the conditionality thta would immediately be attached to such measures. It is not among direct objectives at ECB, but the only other way to fight deflation is to talk euro down. Verbal intervention is not always effective but it has greatly helped various countries to fight their currencies overvaluation, Japan above all. ECB should at least try. |