Macroeconomic round up: The ECB and Germany’s war of words
NBR's Jason Walls discusses the war of words between German officials and the ECB on NBR Radio. With special feature audio.
The European Central bank kept its interest rate on hold at rock-bottom levels this week but used the opportunity to call out its critics.
European Central Bank (ECB) president Mario Draghi launched a counterattack against the bank’s German critics, who have been vocally opposed to the ECB’s easy money policies.
“We have a mandate for the whole eurozone, not just Germany,” Mr Draghi emphasised after the ECB’s policy meeting. “We obey the law, not politicians. We are independent.”
Despite the record low interest rates and quantitative easing, inflation in the eurozone remains flat, falling far below the ECB’s target of 2%. It has missed that target for three straight years.
Concerns about the economic health of the eurozone have been weighing on the UK’s policy makers as the referendum on whether or not Britain should stay in the EU looms.
This week, Britain’s treasury chief George Osborne said Britain would be permanently poorer if it left the EU.
He said leaving the EU would cost households £4300 a year, and the economy would be 6% smaller by 2030.
"That's a fact everyone should think about as they consider how to vote ... As chancellor, I'm clear. We're stronger, safer and better off in the European Union," he says.
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Fri, 22 Apr 2016
Fri, 22 Apr 2016
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Macroeconomic round up: The ECB and Germany’s war of words
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