The fire ofinflation appears tamed, but the secret of the ballot box could hide new political instabilities for the eurozone. The governor of Bank of Italy Fabio Panetta turns on a warning about the upcoming elections in France, which adds to the risk associated with the ongoing conflicts in Ukraine and Gaza.
The banker, who until he was on the board of the ECB fought the short-sightedness of the rigor hawks at all costs, therefore warns the Eurotower to be ready to face possible future shocks. Specify a Cristine Lagarde to use the entire toolbox available to “adjust monetary orientation”.
Therefore to act on interest rates but also, possibly, to top up the bazooka aid where strictly necessary.
To tell the truth, Panetta, guest of a meeting organized by the Finnish central bank in Helsinki, does not only speak to the Eurotower. He addresses his invitation to all the world’s central banks and therefore also to the United States which will see the challenge between Biden and Trump for the White House in the autumn.
Read also:
As for the process of disinflationHowever, everything is progressing according to plan. The searing price flare-up of 10.6% reached in October 2022 is now a memory compared to 2.6% in May. And the fire subsided with unprecedented speed.
Hitting the objective of inflation within 2% is therefore only a matter of time, Panetta reminds us with an indirect message to rigorists who look at the statute of the ECB with the same sacredness due to the tables of the law given to Moses.
In short, “Festina lente”, said the governor of Bank of Italy paraphrasing the teaching that Suetonius attributes to Augustus: in the original Greek “σπεῦδε βραδέως”.
An exhortation to act soon, but with caution. Because, explains the governor of Palazzo Koch, it is difficult to predict what can really influence inflation. As Socrates taught us, he concludes, “we know that we do not know”.
Nicolaporro.it is also on Whatsapp. Just click here to subscribe to the channel and always be updated (free).
Did you like this article? Read also
Follow us on our channels
