Why 'Whatever it takes' still holds sway - especially in emerging markets

Draghi's phrase remains yardstick for monetary policy

clock • 4 min read

"Whatever it takes", the seminal phrase coined by Mario Draghi at the height of the eurozone crisis in 2012, has never been more poignant.

The response to the Covid-19 crisis has been unprecedented in the history of central banking, with the combined balance sheet size of the Federal Reserve, European Central Bank, Bank of Japan and People's Bank of China now in excess of $27trn.  Policy makers will continue to aggressively mitigate the ongoing economic fallout from the pandemic, in our view, injecting ever increasing liquidity and boosting asset purchases.  Throwing a lifeline: ECB support may save sinking economies As a result of this bold and seemingly unlimited wave of liquidity, negatively yielding debt has now b...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Services price inflation remains sticky

Valeria Martinez
clock 01 February 2024 • 1 min read
Eurozone inflation rises to 2.9%

Eurozone inflation rises to 2.9%

Driven by energy prices

Elliot Gulliver-Needham
clock 05 January 2024 • 1 min read
European mutual funds suffer €19bn outflows in October

European mutual funds suffer €19bn outflows in October

LSEG Lipper European Fund Flows

Cristian Angeloni
clock 27 November 2023 • 2 min read
Trustpilot