GLOBAL CENTRAL BANKS
Some economists say that the actions of global central banks are causing volatility in financial markets. The Bank of Japan has this year caused a huge rally in its national stock market and a sharp drop in its currency by announcing a massive monetary stimulus program. Meanwhile, hints by Federal Reserve officials that the U.S. central bank may consider decreasing its own stimulus program have caused big drops in global stock markets.
Draghi suggested the ECB was not contributing to these market movements.
“What’s happening in the rest of the world is producing consequences on volatility.”
— GREEK BAILOUT
The International Monetary Fund this week criticized the handling of Greece’s bailout by itself, the ECB and the EU Commission. In a report, it said that the three organizations had underestimated the severity of the recession that would be caused by the debt reduction measures they demanded of Athens.
Draghi was asked if the ECB should also admit it had made mistakes.