ECB’s Yves Mersch: Newfound Calm in European Markets Reflects Credibility of Reform Effort | European Investment Conference

European Central Bank

European Central Bank (Photo credit: kumbarov)

This is an insightful read, published by the CFA Institute, featuring a keynote speech from ECB director Yves Mersch.

ECB’s Yves Mersch: Newfound Calm in European Markets Reflects Credibility of Reform Effort | European Investment Conference.

Personally, I was encouraged by the optimism for Europe from this important central banker.

However, as I reflected on the speech, I struggled to see the recipe for Southern Europe to quickly recover from excessive austerity, the favored policy option from the ECB and the European Commission.

I believe that the damage from excessive austerity will last a generation, and cannot be whitewashed by an upbeat speech from a central banker. Look to the record levels of youth unemployment in Europe.

Any thoughts?

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3 responses

  1. Pingback: The Jobs Recovery Is Always Two Years Away – David Lizoain – Social Europe Journal « Dr Alf's Blog

  2. Dr Alf is right to be concerned, warm words are no substitute for focused economic growth, inward investment and enterprise.

    Europe needed 6 trillion Euros to get out of its present difficulties but has so far only stumped up £1.6 trillion Euros.

    Yves Mersch might be good at making speeches but words do not pay bills, complacency about Sothern Europe is misplaced and the Eurozonew crisis as a whole has not gone a way

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