Speaking at the World Economic Forum in Davos, Switzerland
on January 25, 2013, Mario Draghi, president of the European Central Bank(ECB), said
the bank’s program to buy the bonds of heavily indebted E.U. states had been
“very helpful” in reducing the perception that the euro was on the verge of
collapse. He also pointed to the structural reforms that heavily indebted states had enacted as “now bearing fruit.”[1] He urged those governments to continue to implement structural reforms so those states could take
advantage of the ECB’s low interest rates and easy credit to banks. In short, the strategy of the ECB was to use monetary policy as leverage for long-term-oriented structural reforms at the state level. Political risk analysts listening to the central bank official
likely came away with a more optimistic stance on the long term prospects for the E.U. economy.
The full essay is at "Structural Reform and Economic Sustenance."
The full essay is at "Structural Reform and Economic Sustenance."
