Saturday, October 11, 2014

IW warns ECB against currency war with USA –

IW warns ECB against currency war with USA –

The weak euro relative to the U.S. dollar for OeNB boss Nowotny cause for optimism, warns the Institute of the German Economy ” We have seen the yen “/ Picture: AP / Frank May

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In a previously published commentary for the “Bild-Zeitung” (Saturday) IW director Michael Huether said: “We are a currency war brought about by conscious … devaluations very close to what is now the Euro happened, we have previously experienced the Japanese yen It is better, therefore, not about the Japanese economy but “

depreciation triggered no structural problems, warned Huether:” A competitive devaluation harms all . ” The IW-chief called it “significant” that the Euro has lost as a world currency since May against the US-dollar ten percent of its value. Huether expects the devaluation stops. Due to the policy of the ECB, in future, banks buy out high-risk securities, investors’ cheap money deducted from Europe and to invest in higher interest rates in the United States. These capital flows reinforce the devaluation of the euro “would be encouraged, said the IW-chief.

Why the German economy before the downturn … is

“France is done, save your money”

Nowotny: Weaker euro nourishes optimism for growth in 2015

OeNB boss Ewald Nowotny sees it differently: The weaker euro makes on its assessment on stronger economic growth hope in the euro zone next year. He also wear help to insulate the danger of too low inflation, he said in Washington on the edge of the Meetings of the International Monetary Fund (IMF) and the World Bank. “The reasons why we expect an improvement in 2015 are, above all, that the export side clearly attracts here,” Nowotny told reporters.

“We are seeing a slowdown, a depreciation of the euro against the dollar. ” Such shortages are not only conducive to exports from, but also have “a positive effect on the inflation rate, which currently is so far below what is our objective”. It should be 0.3 percent in September, the ECB is aiming at two percent. A purchase of government bonds by the ECB “not an issue” is, Nowotny also said

Coeure. Austerity is largely complete in Europe

The most European countries have made progress in the view of the Governing Director Benoit Coeure with the consolidation of its public finances. Therefore, a discussion of austerity in Europe is largely completed, Coeure said on Friday at a lecture at Johns Hopkins University in Washington. In the past four years, European governments have been forced by the financial markets to tighten their belts considerably closer. Many European countries have done their homework. However, there are some states that are far from their budgetary targets.

In obvious allusion to France Coeure said that it was unfair to be lenient in countries which did not reform efforts. The French government wants to reduce its budget deficit, given the difficult economic situation in small steps. The gap will be according to plan this year to 4.4 percent in 2015 and 4.3 percent of economic output. Also in 2016 the minus 3.8 percent are still well above the conditions laid down in the EU treaties limit of three percent. This should only 2,017 below 2.8 percent again – two years later than originally planned

Jürgen Stark:., The ECB obeys the will of the problem countries, sacrificing their ultimate goals

Brezinschek: “Draghi is shipwrecked”

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