Wednesday August 20, 2014 Search
Weather | Athens
29o C
22o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Draghi says ECB must be particularly watchful on low inflation

By Jeff Black & Alessandro Speciale

European Central Bank President Mario Draghi signaled policy makers are ready to take action in June should they see low inflation becoming entrenched.

“What we need to be particularly watchful for at the moment is, in my view, the potential for a negative spiral to take hold between between low inflation, falling inflation expectations and credit, in particular in stressed countries,” Draghi said in a speech at the ECB Forum in Sintra, Portugal. “We are not resigned to allowing inflation to remain too low for too long.”

Draghi said the key issue for the ECB right now is the timing of any action. Officials have said they’re working on a package of possible measures for the June 5 policy meeting, including interest-rate cuts and liquidity injections, while holding out the prospect of quantitative easing as a more powerful option.

Draghi didn’t elaborate on any possible measures beyond his comments after the May 8 policy meeting, when he said officials were “comfortable” with acting next time and willing to use unconventional instruments if needed.

ECB Vice President Vitor Constancio said the conference won’t address current monetary-policy issues, and will focus on academic research papers.

Lagarde Address

The event in Sintra is the ECB’s answer to the U.S. Federal Reserve’s annual monetary conference in Jackson Hole, Wyoming. Nobel Laureate Paul Krugman and Princeton University’s Markus Brunnermeier are among the delegates to address the getaway at Penha Longa, a resort that traces its origins back to a 14th century monastery.

IMF Managing Director Christine Lagarde delivered the opening address yesterday, and warned policy makers that a new range of instruments, known as macroprudential tools, to foster financial stability aren’t proven.

ECB Executive Board members Constancio, Peter Praet and Benoit Coeure will chair panel discussions today and tomorrow, which will include examinations of the role of such instruments in the central-bank repertoire. Draghi will wrap up with closing remarks tomorrow afternoon.

[Bloomberg]

ekathimerini.com , Monday May 26, 2014 (11:36)  
Few respond to safe account call
Greece’s allure as a destination spreads to Asia, South America
Rating agencies under fire for ´unjustified´ Greek downgrades
Concessions called for over Russian ban
Two missing men found shot dead near Kalamata
Two men who had been missing near Kalamata in the Peloponnese since Monday night have been found dead in a ravine 24 kilometers south of the city. Police sources said they had been shot and ...
Dendias talks tax, funds in Germany
The Greek government Tuesday took its case for lower taxes to Germany, where Development Minister Nikos Dendias met German Finance Minister Wolfgang Schaeuble and Economic Affairs and Energy...
Inside News
ATHLETICS
Long jumper Tsatoumas takes Greece´s second silver at European Championships
Greece won its second medal at the European Athletics Championships in Zurich, Switzerland, on Sunday with Louis Tsatoumas coming second in the long jump. Briton Greg Rutherford won the even...
SWIMMING
Silver for Greece in 5k team event at European Swimming Championships
Greece claimed the silver in the team 5 kilometer event at the 32nd European Swimming Championships in Berlin on Saturday. The Greek team of Spyros Gianniotis, Antonis Fokaidis and Kalliopi ...
Inside Sports
COMMENTARY
The responsibility of the West
Events in Iraq, Syria and the broader Middle East region today are to a large extent the result of the West’s failed policies and strategy. The United States, in particular, along with Brita...
EDITORIAL
Skewed taxes
It is essential that the government find a way to adjust the property values used for tax purposes so they match commercial property values as determined by the local market. Property owners...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Two missing men found shot dead near Kalamata
2. Dendias talks tax, funds in Germany
3. Tons of peaches to be distributed to charities, churches
4. Mild summer results in fewer fires this year, figures show
5. SYRIZA may not propose presidential candidate, spokesman says
6. Anti-racism bill with tougher penalties due back in Parl´t
more news
Today
This Week
1. Two missing men found shot dead near Kalamata
2. Carved sphinxes at Ancient Amphipolis tomb will not be removed
3. Greek stock recovery fading away as ASE falls 21 pct on valuations
4. US ship finishes neutralizing Syria's chemical arms off Crete
5. Ship runs aground off Oinusses but sea remains spill-free
6. Elderly pair given extra time to prepare defense for murder of son
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Samaras expects 'exceptionally important find' at Ancient Amphipolis
3. Rhodes villa built for Mussolini among properties Greek privatization fund is selling
4. Canada’s fiscal adjustment has lessons for Greece
5. Treating Amphipolis with care
6. Greece to offer law on restructuring bad loans next month
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.