Extracts from a Speech by Mario Draghi, President of the ECB, made a
speech at Brussels, on 23 March 2015 to
the European Parliament’s Economic and
Monetary Affairs Committee in which he stated the following:
" Indeed, the banks covered in our Bank
Lending Survey confirm that the easing of lending conditions is progressing
hand-in-hand with a resurgent demand for credit to finance business investment.
In the longer-term perspective, this will increase potential output.".
Read this hope against a BIS Paper (Why) Is investment weak? by Ryan Banerjee, Jonathan Kearns and Marco Jacopo Lombardi, 18 March 2015
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"Expectations of future economic conditions
appear to be more important in driving investment decisions. In most economies,
a reduction in uncertainty about future economic conditions has boosted
investment, but in Europe uncertainty has seemingly intensified, restraining
investment. "
So Draghi may have
good intentions but will investors
respond ? Do circumstances in the economies of Europe (Greece, Spain, France,
Portugal) permit an optimistic outlook? A cost inefficient (read rather closed Europe) may see corporates moving out to Asia
and even USA Are we expecting too much in the 'wisdom late comer QE'?
Without risk or responsibility
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