: :inin Kyiv (EET)

Low inflation and slow recovery test ECB policy

Sir,Your editorial (“Draghi perches nicely on both sides of the fence”, May 16) urging the European Central Bank to keep open its monetary spigot, might have been stronger had it recognised two important considerations.The first is that, beyond monetary policy, an important factor contributing to the green shoots now appearing in the European economy has been the approximate halving of oil prices. However, over the past two months oil prices have rebounded by around 30 per cent from their trough at the same time that there has been a significant appreciation of the euro and a significant backing up in …read more

Source: American Enterprise Institute for Public Policy Research

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