Economy
President of De Nederlandsche Bank (DNB), Klaas Knot find buying up government bonds for more than 1,100 billion, which the ECB decided Thursday “abnormal instrument” and “a palliative.” That’s what he said today in Buitenhof.
Knot, which is part of the board of the ECB confirmed in Buitenhof that he voted against the measure. The DNB president was not of “the necessity and effectiveness” convinced, he said.
Many advocates of the program point to the US and the UK, where previous similar programs have been effective. Knot in Buitenhof:
“If you already believe that it has worked in the United States, which alleged success is not just projecting on the eurozone.”
Germany and the Netherlands
The ECB decided Thursday to the coming months per month 60 billion euros to buy government bonds. Because the buy-back program certainly runs until September next year, the program is definitely 1140 billion. The intention is that released by the buy-back program money from banks to lend, so they invest in the economy. That should bring inflation closer to the ECB’s target in the medium term. Just under two percent
Causes low prices
Knot and his German counterpart Jens Weidmann had themselves prior to the meeting already spoken out
The concerns over a long period of falling prices were still under Knot not acute enough to interfere in already. Until now it was only in December deflation. He pointed out that core inflation, excluding volatile energy and food prices, is virtually stable for a year.
The main cause of low inflation, the fall in oil prices, according Knot “a gift.” The cheaper euro is that according to him. He expects that both elements will make the economy well and that there is room for tax windfalls
View the explanation of NRC editor Maarten Schinkel on the decisions of the ECB.
Read NRC Handelsblad: Draghi admits to German pressure and the comments of the newspaper on the ‘money tap’: ECB alienated from Germany, and it is risky (both €)
No comments:
Post a Comment