by Graham Summers
Are Central Bankers delusional?
Over the weekend, Benoît Cœuré, Member of the Executive Board of the ECB, penned a piece defending the ECB’s policies from the criticism that NIRP hurts savers.
The first paragraph reveals, quite clearly, just how lost the ECB is regarding the efficacy of its policies.
Is the ECB stubborn because we are adhering to our monetary policy despite strong criticism? No. We are complying with a precise task that was conferred on us. The EU treaties gave the ECB a narrow price stability mandate. In 2003 the ECB’s Governing Council clarified that euro area inflation should be below, but close to, 2% over the medium term.