Pubblicato in: Banche Centrali, Devoluzione socialismo

Weidmann. ECB dovrebbe ridurre gli stimoli dettati dalla emergenza.

Giuseppe Sandro Mela.

2021-07-13.

Bundesbank 002

ECB should not extend stimulus flexibility to older tools: Weidmann

«The European Central Bank can hopefully reduce emergency stimulus soon and should not transfer the extraordinary flexibility of its crisis-fighting measures to its more standard tools, German central bank chief Jens Weidmann told German newspaper Handelsblatt»

«The ECB last week decided to maintain an elevated pace of bond buys over the coming quarter, despite a stronger-than-expected rebound in growth, fearing that higher borrowing costs could choke off the recovery»

«But some policymakers are already making the case for a discussion in September on how and when to phase out the 1.85 trillion euro ($2.2 trillion) Pandemic Emergency Purchase Programme as the bloc is quickly recovering»

«He said that by next year there should be no unusual capacity underutilisation and such a situation could no longer be classified a crisis, meaning the justification for the emergency measures would be gone»

«“When the emergency for which the PEPP was created is over, it must be ended,” Weidmann, one of the most conservative members of the 25-member Governing Council»

«When this exceptional situation is over, such a high degree of flexibility is no longer appropriate»

* * * * * * *

«Bundesbank President Jens Weidmann said the European Central Bank won’t deliberately seek higher inflation rates to make up for previous undershoots»

«The ECB raised its inflation goal to 2% on Thursday in a unanimous decision after an 18-month debate, and acknowledged that temporary overshoots might occur when interest rates are near their lower limit, as now»

«In the run-up to the announcement, economists and investors speculated over whether the central bank would emulate the Federal Reserve in embracing average inflation targeting, which would mean automatic overshooting after periods of weakness»

«We are not striving for either lower or higher rates, …. That was important to me»

«At least until inflation has been sustainably revived, that should bring harmony to a sometimes-divided Governing Council of 25 officials from 19 countries»

«we do not make our monetary policy contingent on targets not met in the past»

«Still, Governing Council colleague Olli Rehn, the Finnish governor, said on Friday that while the formulation of the Fed and ECB goals are different, his interpretation is that their monetary policy reactions to similar shocks wouldn’t be that far apart»

* * * * * * *

In sintesi.

Herr Jens Weidmann è persona di grande spessore ed ottimo buon senso.

Apprezza le soluzioni elastiche, che meglio si adatterebbero alla gestione di periodi tumultuosi, perché si adattano alla realtà fattuale, senza rigidità.

Nessun accenno alla inflazione, tema scottante nella eurozona. Ma il silenzio non la esorcizza.

*


Weidmann Says ECB Won’t Seek Deliberate Inflation Overshoot.

– ECB lifted goal to 2% Thursday and said target may be exceeded

– Rehn says ECB response to a shock could be similar to Fed

*

Bundesbank President Jens Weidmann said the European Central Bank won’t deliberately seek higher inflation rates to make up for previous undershoots, underlining the compromise made between more-hawkish and more-dovish policy makers on their new price-stability strategy.

The ECB raised its inflation goal to 2% on Thursday in a unanimous decision after an 18-month debate, and acknowledged that temporary overshoots might occur when interest rates are near their lower limit, as now.

In the run-up to the announcement, economists and investors speculated over whether the central bank would emulate the Federal Reserve in embracing average inflation targeting, which would mean automatic overshooting after periods of weakness.

“We are not striving for either lower or higher rates,” Weidmann said, in one of the first reactions from within the council to the outcome of the strategy review. “That was important to me.”

The German central banker’s remarks highlight how ECB President Christine Lagarde won consensus by granting both sides of the policy spectrum devices to argue their case on the economic outlook. At least until inflation has been sustainably revived, that should bring harmony to a sometimes-divided Governing Council of 25 officials from 19 countries.

Read more: ECB Strikes Classic Compromise to Set Terms of Inflation Debate

Weidmann also said the new 2% goal over the medium term is a “clear and easily understandable objective,” and that “temporary deviations from the target in either direction can occur.”

“However, we do not make our monetary policy contingent on targets not met in the past,” he added.

Lagarde stressed in a press conference on Thursday that the institution is not doing Fed-style average inflation targeting.

Still, Governing Council colleague Olli Rehn, the Finnish governor, said on Friday that while the formulation of the Fed and ECB goals are different, his interpretation is that their monetary policy reactions to similar shocks wouldn’t be that far apart.

“We both have a symmetrical target,” he said. He also argued that the new goal would allow the ECB to emphasize other aims in its policy decisions, such as full employment.

Bank of France Governor Francois Villeroy de Galhau said in an interview with Boursorama that the ECB still needs to analyze the meaning of a “temporary” overshoot.

“We didn’t discuss any duration, we didn’t discuss any numbers. It’s all about the context,” he said. “In monetary policy, you have to combine the direction with judgment. We set the direction very clearly.”

French Finance Minister Bruno Le Maire weighed in as well, in an interview with Bloomberg Television, saying that “since we are under very special times, having this flexibility being decided by the ECB is very good news.”

Weidmann also welcomed the decision to include climate-change criteria into decision-making.

“Climate change and climate protection will play a significant role in how we fulfil our mandate,” he said. “It is correct for us to take, in particular, the financial risks deriving from climate change and climate policy as a starting point, to call for the disclosure of the necessary information, and to improve our risk management framework.”

2 pensieri riguardo “Weidmann. ECB dovrebbe ridurre gli stimoli dettati dalla emergenza.

I commenti sono chiusi.