Publications

Amid the weak economic activities in the past years, the authorities have promulgated a large size stimulus package to support growth that the market views as "China's Draghi moment" or "Chinese style QE".

Amid the growing uncertainty of the global economic scenario, stemming from the potential escalation of tariff increases initiated by the US, the main central banks have launched a crystal-clear message this week: monetary policies are entering a new phase.

Unconventional measures taken by the ECB and the combination of several events on multiple fronts are contributing, in a very gradual way, to the pushing up of inflation, although it is a long way from getting back to the ECB’s target. Once the ECB is more confident on achieving the sustained adjustment on the path of inflation, it will adjust its forward guidance.

Since the outbreak of the global financial crisis, and in response to the subsequent European debt crisis, the European Central Bank (ECB) has adopted various measures to stabilise the economy and to aim at achieving its ultimate goal: price stability.

There was no discussion on any change in the QE recalibration. The ECB seems more confident on the economic expansion. Significant upward revision of staff’s growth forecasts.

In October economists Olivier Blanchard and Larry Summers coordinated a conference on “Rethinking macroeconomic policy”, a debating forum on the challenges posed for economic policy by the new environment of low levels of inflation and interest rates combined with slow growth in productivity and increasing inequality.