Euro’s founding father Otmar Issing rebukes ECB over inflation response
Sees a risk of stagflation if central bank policymakers continue to misjudge factors driving up prices.
His criticism that the ECB is being too slow to raise interest rates underscores the fractious debate in Germany and much of the 19-country euro area about how fast it should reverse eight years of ultra-loose monetary policy — including negative rates and €4.9tn of bond purchases.
Axel Weber, the outgoing chair of UBS and former head of Germany’s central bank, told financial newspaper Handelsblatt it was “incomprehensible” the ECB was taking so long to turn its policy around.
FT 12 April 2022
https://www.ft.com/content/145b6795-2d21-48c6-984b-4b05d121ba16
Otmar Issing är sannolikt, vid sidan av USA:s Volcker, världens mest respekterade centralbanksperson.
Jag har en gång i London lyssnat på ett föredrag av Otmar Issing och jag kan intyga att han ser ut som, och låter som, en engelsk gentleman utbildad i Oxford.
När man i hans artikel i Financial Times läser att han använder ord som "economically absurd", "economically erroneous and politically dangerous", "a scandal", "insane", höjer man därför onekligen på ögonbrynen.
IN THE FIRST CENTURY AD, a merchant setting off from Rome on a journey to Cologne was able to pay his bills with the same coin, the denarius, over his entire journey.
Initially, Rome safeguarded cohesion of its large empire by fire and sword, then increasingly by placing even the most remote provinces under the legal system and administration of Rome.
The precise lessons to be drawn from such historical episodes may not be entirely clear.
Så elegant brukar han uttrycka sig.
Läs hans artikel i Financial Times via denna länk
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