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BoC Carney Recommends Bold Japanese Style Actions for ECB

Europe could face a decade of stagnation unless it makes big reforms and should heed the lessons of Japan, Bank of Canada Governor Mark Carney said on Tuesday as he highlighted Japan’s bold moves to bolster growth.

In his final speech as Canadian central bank chief before taking over the Bank of England on July 1, Carney said Europe’s recessionary economy is being held back by fiscal austerity, low confidence and tight credit conditions.

“Deep challenges persist in its financial system. Without sustained and significant reforms, a decade of stagnation threatens,” Carney said in prepared text of a speech he was delivering in Montreal.

“Europe can draw lessons from Japan on the dangers of half measures,” he said, adding that the success or failure Japan’s massive monetary stimulus – which he termed a “bold policy experiment” – will affect the outlook in coming years.

via Reuters [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza