Visco: different response from the USA on inflation in the EU

Visco different response from the USA on inflation in the

(Tiper Stock Exchange) – The ECB must give a response “different from that of the US and Great Britain” to fight inflation. The governor of the Bank of Italy reiterated this Ignatius Visco at the lectio magistralis of the ex number one of Moe Mervyn King who received the award Bancor 2022, established this year by the Guido Carli Association with the sponsorship of Banca Ifis.

Visco underlined the “great uncertainty” of the situation and recognized some errors of estimates, for example on the trend of the price of gas, which was already rising due to Russia’s policies before the invasion of Ukraine.

“The situation is very complex and central banks cannot be asked to solve the problems” of the energy crisis, the post pandemic and the war in Ukraine, says Visco who agreed with Mervyn King on many points, but not all, of his lectio magistralis focused on the advantages of rising rates after the era of zero rates which, according to the former banker, caused inflation and speculative bubbles. Visco then added such problems as such “must be resolved by politics and geopolitics”.