Draghi: Qe protects the Eurozone from the contagion of the Greek crisis – Il Sole 24 Ore

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This article was published March 11, 2015 at 09:28.
The last change is the March 11, 2015 at 10:46.

The ECB bond buying program puts the Eurozone away from the contagion of the Greek crisis. Supports the ECB president, Mario Draghi. “We witness – says Draghi – to new declines in sovereign yields in Portugal and and of other countries, despite the renewed Greek crisis.” “This – he added – suggests that the bond purchase program while shielding the euro area from infection.”

Draghi admits that the bond purchase program is not ‘risk-free. “We are aware that our measures may involve risks to stability ‘financial but these risks are contained.” “The bond purchase program – says – can ‘work and is unfolding in order to stabilize inflation.”

Effect of inflation Qe
There are “good reasons to believe that the substantial increase” of the ECB balance sheet due to the launch of quantitative easing on government bonds “will support a rebound of ‘Inflation’ towards the target values ​​of the institution. This was stated by the president of the ECB. “We can estimate and implementing a monetary policy” that promotes stabilization. “And the reaction observed in the markets at the start of quantitative easing plan launched Monday ‘shows that the purchase plan works.” “The purchases of securities by the ECB are nothing new – said Dragons – and the latest indicators,” positive “, show that the slowdown in eurozone growth has started to reverse course.”

During the conference in Frankfurt, ECB President responded to criticisms and concerns about the German program of Quantitative easing remembering that “purchases of government bonds by a Central Bank” are not something new, if not mistaken so did the Bundesbank in the 70s. ”

Qe Effect on eurozone growth
The monetary policy conducted by the ECB “is supporting the recovery,” the euro area has continued Dragons. Monetary policy ” was one of the three factors “that led to the recent upward revision of growth estimates for the Eurozone. Purchases of government bonds by the ECB ‘not a disincentive’ reforms: if anything, “it will enhance the benefits.” The various’ recent measures decided by the ECB can help a more sustained economic recovery, “said Draghi. ECB President then called again states their responsibilities. “They can and must create an environment more conducive to investment in swiftly implementing structural reforms.”

The quantitative easing “instead of reducing the incentives for reform will increase the benefits,” while will encourage businesses to invest. “The stability-oriented monetary policy and reforms will work hand in hand,” concluded Draghi.

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