ECB and Europe Need to Look Beyond QE

In France it was 2006. In Ireland and Spain it was 2003. In Greece it was 2001. In Portugal and Cyprus 2000, in Italy 1997. That’s how far back you have to go to find a year when living standards peaked for these countries. Note that the worst performance has not been in a country bailed out since the eurozone debt crisis, but in Italy, now in the final stages of not one but two lost decades.

Little wonder, then, that the Italian in charge of the European Central Bank, Mario Draghi, called for more growth-friendly policies in his speech at the Jackson Hole symposium last Friday. Draghi drew an unfavourable contrast between the eurozone and the US. In both, unemployment rose by five percentage points due to the “great recession” of 2008-09; in the US, subsequently, it has fallen by four percentage points but in the eurozone it is still more than four points higher.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
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