When Mario Draghi departed from his script at the central bankers’ gathering at Jackson Hole last month, the world took note.
The president of the European Central Bank did not quite promise to do “whatever it takes” to stave off deflation in the eurozone. But he said enough for investors to believe the Frankfurt-based institution had finally woken up to the threat of stagnation.
Mr Draghi yesterday threw more troops into his counter-offensive. Admitting that eurozone inflation would fall short of expectations in each of the next three years, he committed the ECB to a series of measures designed to sustain flagging demand.
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