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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