In his Introductory statement , the President of the European Central Bank, before the Hearing at the Committee on Economic and Monetary Affairs of the European Parliament, Brussels, 23 March 2015 made the following linkages which makes economics easier to comprehend:
a) European economic recovery is because of oil price fall, improving aggregate demand, expansionary monetary policy, and a fall in the euro.
b) A steady process of re-integration across financial markets and jurisdictions has been under way.
c)Low interest rates are being transmitted to households.
d) Lower interest costs make new projects attractive.
e) Price stability which is 'the' important objective of monetary policy, may not be a sufficient condition for financial stability
f) financial stability is a precondition for effective monetary policy.
g) monetary policy depends on monetary transmission mechanism
h) For monetary transmission to be effective , we need a coherent and integrated financial system that is stable.
Views expressed without any risk or responsibility.
a) European economic recovery is because of oil price fall, improving aggregate demand, expansionary monetary policy, and a fall in the euro.
b) A steady process of re-integration across financial markets and jurisdictions has been under way.
c)Low interest rates are being transmitted to households.
d) Lower interest costs make new projects attractive.
e) Price stability which is 'the' important objective of monetary policy, may not be a sufficient condition for financial stability
f) financial stability is a precondition for effective monetary policy.
g) monetary policy depends on monetary transmission mechanism
h) For monetary transmission to be effective , we need a coherent and integrated financial system that is stable.
" a stable and non-fragmented financial system is important for the smooth transmission of monetary policy signals."
Views expressed without any risk or responsibility.
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