Mario Draghi QE yet to convince

The European Central Bank’s (ECB) President Mario Draghi has yet to convince that his Quantitative Easing concept will sort The Eurozone’s problems.   Draghi will have to invest much effort into convincing policy makers and the general public as well before officials gets into the Sovereign-bond buying program next year on 22 January.   The issue with the Quantitative Easing concept is that the ECB will see itself loaded up with junk assets where it will be huge burden to sell it out in the future.   The strong argument that Draghi is bringing forward with the QE is that the Eurozone will come out of its deflationary state.   Given the delicate situation right now with stakeholders apprehending the QE, ECB’s President will have to dig in his resources and come up with a detailed explanation of this project.   Marco Valli, economist at UniCredit SpA in Milan states that Mario Draghi will have bring all nations forming the Eurozone into a consensus, something that would be important for the successful implementation of the QE program.   Moreover, the Quantitative Easing program will have to be well discussed beforehand for it to match government reforms, risk distribution and monetary financing.   On the other hand, the European Central Bank is still bound by charges imposed by the Germany’s Constitutional Court for the breach of authority.   The tribunal will give its verdict on January 14 and is highly awaited by officials.   Source: Bloomberg
Priscilla Camryn By: Priscilla Camryn
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