11 Mar 2016
ECB’s Constancio - Eurozone would be in deflation without ECB policies
ECB’s Constancio was on the wires stating the Eurozone would have suffered from deflation if it were not for ECB’s ultra easy monetary policy.
Key quotes
All policies have limits, especially negative rates
Urgently need higher growth to normalize inflation
Wrong and dangerous to start talking down monetary policy
Naturally, all policies have limits. In the case of the instruments we are now using, this is particularly true of negative interest rates on our deposit facility
To normalize inflation in the Euro area we urgently need higher growth
Two thirds of EMU growth due to monetary policy
Without our policies, inflation would have been a third of a percent negative in 2015 and would have stayed significantly negative throughout 2016
Net export drag undid growth boost from ECB policy
Key quotes
All policies have limits, especially negative rates
Urgently need higher growth to normalize inflation
Wrong and dangerous to start talking down monetary policy
Naturally, all policies have limits. In the case of the instruments we are now using, this is particularly true of negative interest rates on our deposit facility
To normalize inflation in the Euro area we urgently need higher growth
Two thirds of EMU growth due to monetary policy
Without our policies, inflation would have been a third of a percent negative in 2015 and would have stayed significantly negative throughout 2016
Net export drag undid growth boost from ECB policy