Draghi Says ECB Must Raise Inflation as Fast as Possible | Forex Factory

  • Draghi Says ECB Must Raise Inflation as Fast as Possible

    From bloomberg.com

    Mario Draghi said the European Central Bank must drive inflation higher quickly, and will broaden its asset-purchase program if needed to achieve that. “We will do what we must to raise inflation and inflation expectations as fast as possible, as our price-stability mandate requires,” the ECB president said at a conference in Frankfurt today. Shorter-term inflation expectations “have been declining to levels that I would deem excessively low,” he said. Any new action would follow a flurry of activity since June that has included interest-rate cuts, long-term bank loans, and covered-bond purchases, with buying ... (full story)

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Nut
Nov 21, 2014 4:42am
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Raising inflation is all well and good but it needs to be the right kind of inflation ie wage inflation, thereby giving people more money in their pockets. Anything which reduces the spending power of the consumer will only deepen the crisis in the long term. Just pumping in more money via the banks will not work.
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Weakdollar
Nov 21, 2014 3:45am
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For the past 6 yrs feds, ecb, boj , boe, and pboc have kept rates low resulting in low inflation .what makes him think keeping them low for another year will trigger an increase in inflation. Central banks around the world are either dumb as rocks , totally insane , corrupt, or all of the above.
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billv
Nov 21, 2014 3:36am
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How? by lowering the value of the EURO?
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althar
Nov 21, 2014 5:05am — Edited
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Forced inflation is a legal theft.
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alphafunds
Nov 21, 2014 4:43am
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Quoting Guest
way to push inflation up is to increase oil price. check brent crude chart. nice one, Mario!
Read more carefully, Draghi stated that inflation is low mostly due to low energy prices. However Core Inflation also stays low, what indicates broader problems then only low oil prices.

Rising prices is necessary for any growth. Higher inflation=higher growth. Nowadays I often read articles were author states deflation is good because people will have lower price...also I can read the same in comments.
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mmudasir
Nov 21, 2014 8:39am
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Quoting Guest
I am wondering with all these negative indicators in Europe , you find the DAX index is near all time high on a thin volume , just wondering ????
Because QE

Cheap money will Boost thaT cOMPANIES
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nonpersoldi
Nov 21, 2014 3:49am
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someone playing inside trading??
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Idoscon
Nov 21, 2014 4:55am
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they want inflation 2% every year, but people not, nobody want pay more for products every year, personal income not going up 2% every year, people geting poorer and poorer
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jimr
Nov 21, 2014 7:14am
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I can remember when inflation was the major problem, might not be long before we are there again.
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Trader#D8C2
Nov 21, 2014 10:48am
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Quoting Guest
yeh by destroying the main currency
You've got to be kidding ! The Euro is still overvalued. Only good things can come with a value closer to what it should be (in between 1.15 and 1.00). I think that Drag has been doing quite be lot with just words (down from 1.40 and his predecessors when the euro was screwed at >1.50). When/if QE strikes, we should be seeing a more reasonable value to the Euro, not a destruction of a continent.
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Trader#BFC6
Nov 21, 2014 3:41am
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yeh by destroying the main currency
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Trader#3930
Nov 21, 2014 3:56am
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way to push inflation up is to increase oil price. check brent crude chart. nice one, Mario!
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Trader#3930
Nov 21, 2014 5:12am
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higher petrol prices mean higher transport costs mean higher food prices. Europe is not USA. workers will demand higher wages to compensate for higher cost of living, imo.
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Trader#BF11
Nov 21, 2014 8:16am
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I am wondering with all these negative indicators in Europe , you find the DAX index is near all time high on a thin volume , just wondering ????
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Trader#D73C
Nov 22, 2014 12:11am
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How high inflation affect euro price ?
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