VISION NEEDED: Mario Draghi, head of the European Central Bank, said Thursday that the 17-country euro currency union is unsustainable in its current form. He told EU leaders they must quickly come up with a broad vision for the future to get the bloc through the current financial crisis.
Emerging-market policy makers breathed a sigh of relief after the Federal Reserve left its asset-purchase program in full throttle this week. That much is obvious. What isn’t? That a certain central banker in Frankfurt also likely exhaled ever so slightly — Mario Draghi.
Berlin (AFP) - The eurozone faces a growing risk of unstable prices, the head of the European Central Bank said in an interview published Friday, at a time when concerns are mounting the bloc could slip into deflation.
The European Central Bank’s second round of long-term loans came in at the low end of analysts’ estimates Thursday, bolstering the case for the institution to start large-scale quantitative easing.
The Frankfurt-based ECB said it allotted 130 billion euros (US$161 billion) to euro-area banks at a fixed interest rate of 0.15 per cent in its targeted longer-term refinancing operation. Estimates in a Bloomberg News survey ranged from 90 billion euros to 250 billion euros, with a median of 148 billion euros.
DAVOS, Switzerland — Is the euro crisis over? A leading U.S. economist says not by a long shot. Even as the head of the European Central Bank talked Friday of “positive contagion” in the markets and predicted an economic recovery for the recession-hit eurozone later this year, economist Barry Eichengreen warned that the debt crisis that has shaken Europe to its core could easily erupt again this year unless European leaders move faster to solve their problems.