So wrote Ambrose Evans-Pritchard in The Telegraph this week. He continues: ‘’The European Central Bank has reached the end of the road. It no longer has the monetary levers or the political authority to launch another ‘shock and awe’ rescue if the Eurozone tips into recession’’. With sovereign bond yields on a lot of paper now negative, with commercial banks complaining that the ECB’s target rate has become an impediment to business, with Germany dallying at the edge of recession, and Italy, where productivity has dropped for the whole of this century, looks as though it might face perma-recession. Oh dear! Mario Draghi must be wishing his retirement date was sooner.
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