Better hire a few mavericks, Mr Draghi

I see that Mario Draghi, the President (that is, chief executive) of the European Central Bank (ECB) is coming to his senses.  He’s decided to put further Quantitative Easing on hold.  He’s citing China’s recent wobble — and apparent recent recovery — as the reason.  He’s waiting to see whether there will be more wobbles.  There probably will be but it’s little to do with China.  China’s wobbles have not been the cause of anything. They are the result of a wider phenomenon — world-wide wobble, principally visible in the Third World but present everywhere else also.

It really doesn’t matter whether Draghi decides on more QE or not.  He won’t change the world-wide situation, even less the European.  He’d be wiser in retrospect not do any more QE because the money will only have to be sweated out of the system one day anyway.

The ECB’s brief life is already coming to an end as an effective institution.  It’s joining the Bank for International Settlements, the World Bank, the International Monetary Fund, the Organisation for Economic Co-operation and Development in becoming mainly a think tank. Recruit a few maverick economists, Mr Draghi, and see what they might say about the situation.

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