“When asked during the press conference whether further rate cuts were likely, Mr Draghi appeared to signal that the lower bound had been reached.”
“Nothing specific on QE
Mr Draghi was asked several times during the press conference about the likelihood of a large-scale asset purchase programme. As expected, Mr Draghi did not rule out this possibility, saying that it was an option should the need arise. But he gave no further hint as to whether Fed-style QE involving significant outright purchases of domestic sovereign debt has become more likely. In any case, the ECB will first want to see how the new measures work before it considers a QE programme in earnest. We continue to assess a probability of just 15% to an LSAP programme involving sovereign debt through year-end.”
“…the proposal that is known as ‘Overt Monetary Financing’ (OMF), where the European Central Bank (ECB) uses its currency-issuing capacity to underwrite the fiscal deficits of the Member States in order that they create growth and employment in their domestic economies without encountering the restrictions that private bond markets place on their spending is considered in detail.
(…)
The analysis shows that it can be a very effective way for governments to responsibly manage their economies without having to issue public debt.”
In fact, Warren Mosler’s proposal is the ONLY way out of the ‘new’ orthodoxy, i.e., out of the “monetary twilight zone”:
joseba says:
Draghi, E eguna baino lehenago:
http://www.zerohedge.com/news/2014-06-04/ecb-decision-day-guide-5-simple-questions
http://www.zerohedge.com/news/2014-06-05/not-algo-stirring-ahead-ecbs-announcement
joseba says:
Comedy, charade:
06/05/2014 – 07:47 http://www.zerohedge.com/news/2014-06-05/ecb-cuts-deposit-rate-negative-first-time-ever
08:00 http://www.zerohedge.com/news/2014-06-05/gold-euro-tumbles-draghi-promises-more-stocks-usd-jump
08:24 http://www.zerohedge.com/news/2014-06-05/mario-draghis-more-policy-actions-come-ecb-press-conference-live-feed
08:39 http://www.zerohedge.com/news/2014-06-05/draghi-reveals-more-will-do-targeted-ltro-suspends-sterilization-prepares-abs-purcha
09:06 http://www.zerohedge.com/news/2014-06-05/gold-jumps-initial-bondstockeur-exuberance-fades
09:22 http://www.zerohedge.com/news/2014-06-05/mario-draghi-comedy-hour
10:00 http://www.zerohedge.com/news/2014-06-05/markets-1-0-draghi-eurusd-rallies-back-unchanged
10:10 http://www.zerohedge.com/news/2014-06-05/whats-wrong-ecb-forecast
10:27 http://www.zerohedge.com/news/2014-06-05/have-questions-about-ecbs-unprecedented-negative-deposit-rate-call-guy
11. 47 http://www.zerohedge.com/news/2014-06-05/stocks-hit-record-highs-bonds-euro-shrug-ecb
12:11 http://www.zerohedge.com/news/2014-06-05/eu-warns-greece-cause-serious-concern-top-tax-collector-resigns
12:29 http://www.zerohedge.com/news/2014-06-05/draghis-action-plan-cheat-sheet-not-many-options-left
16:05 http://www.zerohedge.com/news/2014-06-05/sp-500-hits-record-high-tepper-turnaround-trumps-draghi-disappointment
16:31 http://www.zerohedge.com/news/2014-06-05/whos-afraid-big-bad-tepper
17:01 http://www.zerohedge.com/news/2014-06-05/bubble-bubble-toil-and-monetary-policy-trouble
joseba says:
What Mario Draghi Did Today: Goldman Sachs Explains
http://www.zerohedge.com/news/2014-06-05/what-mario-draghi-did-today-goldman-sachs-explains
“When asked during the press conference whether further rate cuts were likely, Mr Draghi appeared to signal that the lower bound had been reached.”
“Nothing specific on QE
Mr Draghi was asked several times during the press conference about the likelihood of a large-scale asset purchase programme. As expected, Mr Draghi did not rule out this possibility, saying that it was an option should the need arise. But he gave no further hint as to whether Fed-style QE involving significant outright purchases of domestic sovereign debt has become more likely. In any case, the ECB will first want to see how the new measures work before it considers a QE programme in earnest. We continue to assess a probability of just 15% to an LSAP programme involving sovereign debt through year-end.”
joseba says:
Monetary Twilight Zone:
http://www.zerohedge.com/news/2014-06-05/nirp-has-arrived-europe-officially-enters-monetary-twilight-zone
Much better this approach: Bill Mitchell-ek Options for Europe – Part 94, http://bilbo.economicoutlook.net/blog/?p=27942
“…the proposal that is known as ‘Overt Monetary Financing’ (OMF), where the European Central Bank (ECB) uses its currency-issuing capacity to underwrite the fiscal deficits of the Member States in order that they create growth and employment in their domestic economies without encountering the restrictions that private bond markets place on their spending is considered in detail.
(…)
The analysis shows that it can be a very effective way for governments to responsibly manage their economies without having to issue public debt.”
In fact, Warren Mosler’s proposal is the ONLY way out of the ‘new’ orthodoxy, i.e., out of the “monetary twilight zone”:
https://www.unibertsitatea.net/blogak/heterodoxia/2012/05/21/warren-mosler-en-proposamenak/