Draghi should go golfing instead of worrying about Italian politics

Draghi should go golfing instead of worrying about Italian politics
Over the weekend the news agencies reported that ECB chief Mario Draghi had called Italian president Giorgio Napolitano to "express concern that his resignation would leave Italy without leadership at a time of mounting tension in financial markets, exacerbated by the bank crisis in Cyprus" (quoted from Reuters). I think this pretty well illustrates what is wrong with the ECB's view of the world. Apparently the ECB thinks that it is in its mandate to actively influence the political outcome in different European nations. So it is no surprise that Mario Draghi and other European central bankers don't have any time for golfing. Over the past five years the ECB again and again have signaled that it central bank now has included certain political outcomes in it's reaction function and it hence now seems like it has also included a "variable" for who is Italian president. Instead the ECB should be completely clear that it will only focus on it's mandate to ensure 'price stability'. It is clearly failing on that at the moment as very weak money supply growth indicates that the euro zone is heading heading for outrigh deflation.  Therefore, if the ECB feel an urge to have a view on Italian politics the following statement would have been appropriate: "The ECB naturally monitor economicm


WORLD LEADING ADVISORY SPECIALISING IN THIS TOPIC

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