In August, the Bulgarian government adopted a detailed action plan for joining ERM II and the Banking Union and there were some changes1 to the Bulgarian National Bank Act that also seem to lead in this general direction.
The Council of the European Central Bank (ECB) meets on the upcoming Thursday. Despite explicit criticism especially from Germany, no one should expect higher interest rates in the medium term.
Back in 2012, Mario Draghi vowed to do “everything in his power” to save the euro. Four years later that promise seems fulfilled – both the recent moves by the ECB and the market reaction that followed suggest that we are reaching the limit of what monetary policy can achieve in the euro area.
The chairman of the Central Bank of Lithuania will become a member the Governing Council of the European Central Bank, which is responsible for monetary policy for the euro area. Thus, if Lithuania wants to properly represent it‘s interests, it has to join the debate concerning decisions of the ECB.
Clueless looks of politicians will be once again drawn to the ECB. In addition to reports on starting recession, they are supported also by the legend of deflationary spiral that regularly emerges from monetary depths to destroy the shoots of economic success.
Unfortunately, most governments are not using structural solutions; they are using cyclical solutions, such as greater monetary easing.
EU officers are angry. European banks came up with interesting news. If you want a house in Spain, you have a great chance now, supply increases. Illicit money scandal also in the Spanish government.
Finally we are sending ESM our money. Spain is waiting for a miracle. Greeks saved money for karts. Iranians made a bomb – inflationary bomb! Similar bomb is predicted by FED’s models. So we finally have it. After months of negotiations, voting and ruling ESM – the permanent bailout mechanism – is finally here. It is the first time when Slovakia provided real money for saving the euro, to be specific EUR 264 million. As the saying…