With few weeks to go before the end of his term, outgoing European Central Bank (ECB) President Mario Draghi left a lasting mark on monetary policy on Thursday. It is “whatever it takes” for “as long as it takes.”

Eurozone inflation is subdued to 1,2%, that is, well below the 2% target indicating a healthy economy. That is despite a tight labour market across in Western Europe and declining levels of unemployment in the south. Therefore, Draghi made three commitments Christine Lagarde will have to uphold for an indefinite period.

Draghi’s second term ends on October 31 but his legacy will be lasting.

 

Full article available: https://www.neweurope.eu/article/draghis-exit-plan/

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