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Challenges Require Central Banks’ Open-Mindedness

Central banks did a lot in the past ten years to reinforce the world economy, it is crucial that they stay open-minded preparing for the ever-evolving future, said M. Draghi.

No particular messages were sent as to the ECB’s present policy considerations, but its president highlighted that the officials mustn’t spin their wheels trying to hold up previous paradigms that are no more consistent. In his speech to Nobel-prize winners and economists in Lindau (Germany) he pointed out that research is critical in developing monetary policy.

Among difficulties is deciding the amount of financial help the region requires in order to be sustainable, and the way economic situation will develop when the support is eventually ceased. Judging by the July’s rise of 1.3% on consumer goods, one could say deflation is out of question, however it’s far less than the target of slightly under 2%.

At the end of this week Mario Draghi is to speak at the Fed’s event in Wyoming, and many investors will clearly be looking forward to that. Together with Federal Reserve’s Janet Yellen and other economists they’ll get together to talk over the issue of stimulating robust growth.

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