The ECB’s monetary policy on rate hikes is a flop. The data
When an important and “untouchable” institution like the European Central Bank makes decisions about Europe’s monetary policy is certainly aware of what it is doing.
The strenuous defense of a inflation at 2% (dogma?) should be evaluated with very thoughtful attitudes, because the involvement concerns 512.6 million people, so many are the inhabitants of the UE.
Now I wanted to examine the years 2010 and 2023 by comparing them with the data you will find below to justify what the President said Lagarde.
The monetary policy of the ECB. The data compared from 2010 to 2023
In 2010, i ECB rates were equal to 1/1.5%. In 2023, however, we reached 3.5%. As for the unemployment rate in Italyin 2010 the figure corresponded to 8.4%, which dropped to 7.9% in 2023. Still speaking of unemployment, but this time within the entire European Union, in 2010 it was 9.6% while in 2023 it fell to 6.5%. The data on consumption in Italy in 2010 corresponded to 19%, down compared to 2023 (10%).
Taking into consideration inflation (main theme of the monetary policy of the Lagarde), in 2010 in Italy the figure stood at 1.52%. Today, however, inflation hovers between 6.5% and 7.3%. In the EU as a whole, 12 years ago inflation was 2.2%, while now it stands at 6.4%.
With regard to the Italian GDP, in 2010 it was equal to 1851.5 billion euros. Increasing in 2022 to 1,909.1 billion. The GDP of the EU, on the other hand, in 2010 amounted to 15,170.4 billion. In 2022, the figure instead stands at 16,199 billion euros
As you can see the only out of tune data are in inflationwhich is currently declining, we had the double-digit top in 2022, but what did the Lagarde?
“We’ll get the price stability and we do not compromise on the commitment to report inflation at 2% in the medium term. We will follow a robust, data-driven strategy that sees us ready to act, but without compromising on our primary objective.”
“As we have demonstrated time and time again, we are able to establish the proper orientation of monetary policy to hold off inflation and at the same time use other tools to address risks to monetary policy transmission,” he argued.
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