After a short introduction of the author, the following article deals with the topic “ The Future of Central Banking: Inflation Targeting versus Financial Stability”, which will be discussed at the Global Economic Symposium in Rio this October. The author intends to enrich the discussion at the symposium with your personal stories and ideas.
Hi everybody! This is my first post in the blog and i hope that many will follow. Let me introduce myself: I’m a 23-year old from Germany and i live and work near Münster. (Might heard of it? No? But you should ;-) ) This is my second GES, i also attended the one last year in Kiel and blogged about it. With a bachelor’s degree in Business, I work as a controller in a big international company. My majors were Finance and Marketing. At the GES 2012, i will focus on the topics Education and Economy, with some trips to Internet/Social media themes. So that’s it for now, hope you’ll like it and engage also, your comments and remarks are very welcome!!!
I wanna start with a very current topic, at least for good old Europe:
Debt crisis – Banking crisis – State crisis.
Actually European Governments are facing the cruel power of the markets. Nobody is willing to buy their bonds anymore, interest rates are back at 6-7% (Italy, Spain) or even higher (Portugal, Ireland, Greece). Chancellor Merkel plays here role as Madame No aggainst the countries of Southern Europe, who want to play QE 1-3, like the US. And Germany has strong support of the other (quite) well running economies of the North. The ECB is part of that game, torn between
- the fiscal gate keeper with major on inflation or
- protecting the shattered economies with cheep money
The question is: Should Europe accept the current interest rates or not? Is this a market failure or simply the harsh, real world? And, to lean on the session theme: Is there a reason for central banks like the ECB to turn their basic mission, fighting inflation, away and focus on financial stability?
-> Dear Reader: Now your part starts:
- What is your impression about the current situation?
- Is this a market failure or simply bad government?
- Who controls Central Banks while targeting not only inflation, but also acting political influencing the markets?