President Mario Draghi made another vague comment about how the European Central Bank can help relieve the financial tension in Europe:
Yet it should be understood that fulfilling our mandate sometimes requires us to go beyond standard monetary policy tools. When markets are fragmented or influenced by irrational fears, our monetary policy signals do not reach citizens evenly across the euro area. We have to fix such blockages to ensure a single monetary policy and therefore price stability for all euro area citizens. This may at times require exceptional measures. But this is our responsibility as the central bank of the euro area as a whole.
The comments are like those he made several weeks ago when he said the bank would do all that was necessary to save the euro. Since then, the ECB has done nothing of the kind.
Douglas A. McIntyre
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