Mario Draghi Can Leave One Last Monetary Gift
The ECB is unlikely to cut rates now, but there is a way it could reassure markets for the future.
One more time?
Photographer: Andreas Arnold/BloombergMario Draghi has worked nothing short of monetary miracles over his eight-year term as European Central Bank President through a sequence of unconventional policy interventions. As we count down the days to Draghi’s departure, expectations are building once again that he will be able to pull one final rabbit out of the hat.
Whether long-term loans to banks, a conditional safety net underneath the sovereign bond market, negative rates or quantitative easing, Draghi coaxed and cajoled his colleagues on the Governing Council into delivering it. The naysayers in financial markets might say it has all been for naught. Try telling that to the near 11 million people who have found work since the trough in 2013.