Speaking of the future and life’s lessons, there is an ongoing process of discovery taking place amongst the world’s central bankers which they hope will rejuvenate their respective economies without creating the inflationary horror of the 1970s.
Mario Draghi and his European Central Bank colleagues disappointed the markets on Thursday by refusing to deliver what speculators were demanding. Ultimately, the ECB will have to do more to fight off deflationary threats; after all, it cut its own inflation and growth estimates at Thursday’s policy meeting.
Are falling crude oil prices a good or bad thing? The Saudi oil price war is raising those questions as they cut the selling price to Asia and say they think oil will stabilize at $60 a barrel which may become a self-fulfilling prophecy.
The characterisation of Europe as “elderly and haggard” by Pope Francis is an accurate one, but on Dec. 4 the European Central Bank could lay the groundwork to try and revitalise the region's sagging economy. And though quantitative easing might be justified on inflation levels (prices are likely to weaken further on falling commodity prices)--Draghi clearly faces tough opposition within the ECB, hence QE hasn't happened yet.