Chris Iggo (AXA IM) | Sensible economic and monetary policies don’t necessarily go hand in hand with populism (see the recent sacking of the Turkish central bank head). In a world of more extreme policy agendas, a resort to manipulating currencies could be seen. No-one wants a strong currency now and the costs of devaluation are not really recognised in a low inflationary world. But attempting to override markets in setting the international price of currency is a difficult policy, especially if done unilaterally.
MADRID | By Francisco López | While Mr. Draghi simply says that the ECB “is closely following the evolution of the exchange rate due to its impact on the price stability,” other international bodies such as the IMF, the OECD, the European Commission and most of the Eurozone’s countries (with the exception of Germany and its allies) demand the banking authority to take immediate action.