Daring Draghi
01/14/2014 | | Deflation in Europe, ECB, econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, Mario Draghi, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist
With Eurozone inflation below 1% and falling, and the money supply barely growing, the European Central Bank may have to become very creative to stave off deflation. Here’s why: while it might have authority to buy sovereign bonds, due to political considerations it would have to slavishly buy them in proportion to the economic weight of each country in the Eurozone rather than focus their purchases where deflation already exists.