European Central Bank lobbying, Giavazzi (Draghi adviser): ‘Inflation depends on the price of gas, and raising prices is the wrong tool’

“there European Central Bank Promises to raise me Taxi To respond to the increase ininflation with a tool wrong – wrong – wrong“. If the Minister of Economy Daniel Franco He restricted himself to soft phrases and virtual periods, hoping to avoid them”tensions Not necessary” but note that the ads arrived last week from Christine Lagarde was “expected”, Francesco Giavazzi He is openly critical of Eurotower’s decision to normalize monetary policy. The economic expert who has been the economic advisor to the Prime Minister since last year Mario Draghi Speaking at the Alberto Giovannini Prize, he said in practice that a rate hike in the European context unstimulated Because “we don’t have demand inflation like we do Uses But we have price inflation GasFranco last Friday expressed the same concept but very cautiously not to launch outright attacks: “If it is on the demand side, an increase in rates is appropriate to contain inflation, If inflation is largely dependent on supply shocks high rate less important“, It is to explain.

Giavazzi’s prediction is that the increase in rates goes hand in hand with the broadening of Spread “In a few months Special demand will reduceA “So the economy is starting to slow if not stagnate. What do I do?” Faced with the decline in private demand in the coming months, we must Pnrr . AccelerationBecause it is still true that the attacks on Italy are behind them structural weaknesses Long-lasting remains unresolved that ballast growth. The reason there is a differential that raises the cost of debt in Italy is the debt-to-GDP ratio. Today, priority number one Reducing the debt/GDP ratio And we can do this by accelerating GDP. According to Giavazzi, according to Giavazzi, PNRR could allow us to do that. So there is nothing special about Italy.”

There is, too European Commission On Monday, he called on Italy to “resolutely implement” the reforms and investments envisaged in the Recovery and Resilience Plan. Executive Vice Chairman of the Board of Directors of the Community Dana Spinant, during the press conference in Brussels, when asked about the widening of the spreads after the ECB announcements, replied that the central bank is “independent” in its decisions and “with respect to Italy in particular, there are specific reforms and investments In NRP we expect Significantly improve flexibility From the Italian economy, his Sustainability and comparability. Italy is today in the implementation phase, and we clearly encourage the Italian authorities to continue resolute implementation.”

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