Report
Patrick Artus

What is Mario Draghi’s real objective?

Many observers were surprised by the fact that M ario  Draghi practically announced a cut in the ECB’s interest rates, at a time when banks’ deposit rate at the central bank is - 0.4% and Germany's 10-year interest rate is - 0.3%. What is Mr Draghi really seeking? Officially, there is no ambiguity: the objective is to bring inflation and expected inflation towards the 2% target; but we can see that the expansionary monetary policy is unable to make this happen, even with a significant fall in the unemployment rate, and even with a weak euro; Could Mr Draghi have a different objective? Is it to maintain the fiscal solvency of the peripheral countries, and Italy in particular ? If that is the case, it would be fiscal dominance; Could it be an attempt to "overheat" the economy, and force companies to become more efficient, with higher productivity gains?
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

Other Reports from Natixis

ResearchPool Subscriptions

Get the most out of your insights

Get in touch