The same desire to end of year: ECB and IMF want more stimulus … – Express

The same desire to end of year: ECB and IMF want more stimulus … – Express

There were combined, but agreed in the end of year wishes. Peter Praet, chief economist of the European Central Bank (ECB) reiterated this holiday season there is a “sense of urgency in action” and that the central bank “will reassess the situation early next year.” Praet said in an interview with German financial newspaper “Boersen-Zeitung”, published on Wednesday, there is a real risk of “an economic vicious cycle” and that companies are to confine to a bad situation “1% 1% growth and inflation. ” Praet not think that we should call this new era of “poor” (as considered the International Monetary Fund), but a new reality “closer to a Keynesian underemployment equilibrium”

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Remember that the goal set by the ECB since September is to increase its balance sheet by one billion euros. In the three programs launched in September, October and November, still only injected 244 billion, including a fiasco in refinancing line 2018 called TLTRO (a conditioned line by mandating banks financing the real economy) that in two operations in September and December had only one looking for 212,44 billion euros, while the amount available was 400 billion

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Analysts interpreted the answers Praet in an interview with German financial newspaper as signaling the ECB likely to advance in the first quarter of 2015 to a sovereign debt purchase program

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Meanwhile, Christine Lagarde published on Wednesday an opinion article in the Italian newspaper “Il Sole 24 Ore” entitled “Three challenges for governments in the world that do not want to resign themselves to stagnation “, which reaffirmed that” an accommodative monetary policy remains necessary while growth remains anemic, although we must be very attentive to the risk of potential effects “.

The main recipient is the ECB and the blocking forces within it, as the Bank Japan continues its program of “quantitative and qualitative relief” with great vigor and the president of the Federal Reserve US, Janet Yellen, promised that the most powerful central bank in the world will be “patient” in 2015.

The director general of the International Monetary Fund pointed out the three challenges of the year: fight for growth or resign themselves to stagnation; improve stability or succumb to weakness; and act together or isolated

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