BEIJING, March 11, according to foreign media reports, the ECB announced a series of new measures to ease monetary policy. But many economic circles do not agree. Experts point out that loose monetary policy will enter a blind alley.

According to reports, the European Central Bank eased monetary policy again. Local time on 10 May, the ECB announced that key interest rate to 0% for the first time, the marginal deposit rate (ie, the central bank deposit interest paid to banks) from -0.3% to -0.4%, while the purchase of bonds from the monthly scale 60 billion euros to 80 billion euros to expand.

This upset the Germans putting bankers have shook his head. "We currently do not have the risk of deflation, prices and wages do not decline. If the drug is not symptomatic, the dose more useless." One of Germanys ruling Christian Democratic Union (CDU) Secretary-General Shi Taige (Wolfgang Steiger )Say.

Drug is not symptomatic?

German Foreign Trade Association (BGA) Main Xiboerna said: "This is the stock market investors and indebted countries of southern Europe is good news, but the German people is a disaster that peoples savings continue to depreciate it in the end will not play any role. , in addition to placate those indebted countries, they did not reform, not to raise productivity, the North-South gap will pull more. "

Commercial Banks chief economist Targobank Otemae • Lang pointed out that these measures show nervousness ECB, "they must admit that so far monetary policy did not work." For example the central bank to influence inflation expectations very limited , in addition to the euro exchange rate trend is higher, not lower, people are looking for loan recovery is very slow. It seems reasonable to stress the ECB. In the ECB Governing Council, the current policy directions already controversial, some people for some time that the European monetary policy has no room for maneuver.

Over the past year the European Central Bank to market hundreds of billions of euros injected, but not for economic growth and inflation pick up. Southern Europe is still the national bank bad debt burden moan, businesses and individuals are reluctant to debt loans, low-interest policy did not let its cash flow improved.

German commercial banks (Commerzbank) said Kramer, chief economist, now ECBs time to change our thinking. "If you talk about monetary policy with entrepreneurs, often heard argument is: if things continue like this does not work they forced politicians think the ECBs high-pressure, so that the euro area can not solve problems, but only with a little town. analgesics, stalling for time.

Reform fatigue

Many entrepreneurs have confidence in the ECBs monetary policy is no longer, and not only in Germany. Kramer noted that the zero interest rate policy will first capital misleading, because the investors have turned to see the return of real estate, real estate prices in Germany have been lifted too high, a few years it will form a bubble. Once shattered national economy will result in huge losses.

Secondly loose monetary policy will lead to reform of stagnation. For example, the Italian government will be significant savings due to low interest rates, will also reduce the pressure for reform; but we do not reform, enterprises face a bad framework conditions will not improve. And if not the European Central Bank to provide backing the new government of Portugal, the Government does not at the expense of business interests at the expense of the success of labor market reforms to turn the clock back.

Kramer believes that many companies have anticipated the future framework conditions will only get worse, so the investment is very cautious. This is why since the financial crisis of 2009 coming to an end corporate investment in the euro area did not increase significantly, but still 13% lower than pre-crisis levels. "The ECB can not just listen to yourself, and the finance ministers of the market, but should communicate with the business community." That is, the end of the crisis mode, releasing optimistic and enterprising signal, "How to launch a gradual return to normal, appropriate interest rate Program."