The European Central Bank lowers rates to accelerate economic recovery

The European Central Bank injects more money into the continental system, in an attempt to boost the economy. The low inflation rate in the euro area still present justifies the fear of the comeback of deflation and the further reduction of the economy that would result in logical contraction of production: in a word, the feared stagnation. This despite the low price of energy materials that should facilitate a recovery in production and therefore consumption. Precisely on the issue of consumption that recorded values ​​are the low domestic consumption, which does not allow the production values ​​to take off. This condition is common to virtually all countries of the euro, with the exception of Germany supported by exports, especially of machinery. Actually exports are not bad in the other countries, but not enough to compensate for the low values ​​of the marked internal. However, on this front, there is the risk of experiencing significant contractions due to the negative trend of China, sure this will be offset by the good performance of US growth. According to the technicians of the European Central Bank should continue on the line of the depreciation of the euro, which has almost reached parity with the dollar, to boost the competitiveness of European products. This sort of devaluation can be encouraged by the introduction of money into the economy through the increase in purchases of securities issued by sovereign states only ninth, but also by local authorities of the countries of the euro: a purchase in large amounts of debt quantified in the order of around 60 billion euro per month, up to a total amount of 1.500 billion Euros, compared to 1,160 planned. This should facilitate the lowering of interest rates charged to mutual public and free up resources for the private banks, facilitating investment in other sectors, which are not public ones. To support this move will be a rise in the interest of deposits that commercial banks maintain in the coffers of the European Central Bank; This measure is designed to stimulate more lending to businesses and households, while maintaining the reference rate at the lowest possible value, 0.05%, leaving the cost of credit to a level still low. These steps come late anyway at least five years, after which for blocking the economy of the euro zone due to German obstinacy a penalty convenient only in Berlin. Conversely similar measures taken in due time by the central banks, like the British and the US, have enabled substantial economic recoveries. The German attitude, but always suspicious maneuvers of this kind, for fear that the countries of southern Europe have the pretext to postpone economic reforms, could be changed by the knowledge that in the near future exports of Germany will no longer be on current levels and therefore also the country's credit German who needs to be stimulated.