ECB QE Stimulus - No Matter What Germany Says

YouKnowWhatIMeanLike

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Mario Draghi OMRI has ignored Germany for most of his reign as chosen ruler of the ECB. Germany's critic that monetary policy cannot supplant fiscal, structural and trade reforms fall on deaf ears in tower of Frankfurt. As it stands Drughi will run the extraordinary measures to the end of his regime at the ECB next year to avoid withdrawal symptoms. Leaving behind a mountain of more than 3 trillion euro of private debt for European taxpayer to pick up?

Will QE end with the appointment of a new ECB president next year? Or is it safe to assume that Germany as usual has no say in the matter due to voting rights in the governing council? aka Club Met?

https://www.cnbc.com/2017/08/28/the-ecb-shouldnt-rush-to-end-stimulus--no-matter-what-germany-says--commentary.html
 


gleeful

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If he stopped QE now, the euro would increase in value relative to the dollar and sterling - which would be bad for German exports. So while Germany might voice concerns (ahead of their election) they aren't really against this.
 

blokesbloke

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If he stopped QE now, the euro would increase in value relative to the dollar and sterling - which would be bad for German exports. So while Germany might voice concerns (ahead of their election) they aren't really against this.
That's how the EU works.

Governments who know a certain course of action would be unpopular with their populations put up fierce public arguments against it and then "back down" in the name of "European solidarity".
 

Erudite Caveman

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That's how the EU works.

Governments who know a certain course of action would be unpopular with their populations put up fierce public arguments against it and then "back down" in the name of "European solidarity".
Yeah, it is excellent. National concerns voiced, consensus emerges and implemented as such. The only problem is that it is a slow process.
 

Wascurito

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German central bankers might be horrified.

German exporters are loving it.
 

Wascurito

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Drughi will run the extraordinary measures to the end of his regime at the ECB next year to avoid withdrawal symptoms. Leaving behind a mountain of more than 3 trillion euro of private debt for European taxpayer to pick up?
How does that work? Is it not more correct to say that it will be the Eurozone folks who'll lose out in the end via a weakened currency and lower spending power? Rather than an actual and definable bail-in/bail-out/whatever?
 

stopdoingstuff

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How does that work? Is it not more correct to say that it will be the Eurozone folks who'll lose out in the end via a weakened currency and lower spending power? Rather than an actual and definable bail-in/bail-out/whatever?
Both. If that money is being used to invest in and then artificially inflate assets, then another day of reckoning approaches.
 

Mad as Fish

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Mad as Fish

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This is untrue. Moderate inflation is defacto redistribution and benefits the middle classes most (along with anyone with debt such as mortgages)
That assumes that price inflation runs more or less in parallel with wage inflation for all income groups.
 

okibb

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Rumours that the next ECB chief will be from Germany.
 

YouKnowWhatIMeanLike

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This is untrue. Moderate inflation is defacto redistribution and benefits the middle classes most (along with anyone with debt such as mortgages)
depends on your definition of middle class. if you mean higher paid public sector workers and bankers in Ireland you might be spot on.
 

brughahaha

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If he stopped QE now, the euro would increase in value relative to the dollar and sterling - which would be bad for German exports. So while Germany might voice concerns (ahead of their election) they aren't really against this.
Yep a severe case of "the lady doth protest too much"

Germans living the dream ....on the backs of lots of other EU economies ...EU solidarity my ass (as the slow learners will shortly find out in the Brexit negotiations )
 

blinding

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Yep a severe case of "the lady doth protest too much"

Germans living the dream ....on the backs of lots of other EU economies ...EU solidarity my ass (as the slow learners will shortly find out in the Brexit negotiations )
Wouldn't you think that Europe would know better than to let the Germans get the Whip Hand......

If you don't learn from the lessons of history you are doomed to repeat them.......
 

ManUnited

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It doesn't matter as the new chief will be instructed by the Germans in any case.......
That is obviously not true. The ECB has gone against Germany's wishes a few times. So much so that two German members of ECB governing council resigned.
 


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