In Jackson Hole, Mario Draghi warned that the European Central Bank's measures needs to align with political and tax reforms among euro zone nations. He reiterated the same message he gave at the beginning of the month and in front of Europe's Parliament yesterday.
He thinks that monetary policy is not the only tool for spurring growth. Without changes to the region's models of production and political reforms, the ECB cash infusions are not going to reach the real economy. In other words, flooding the financial markets with money won't help families and small companies get loans or help reduce unemployment as much as European nations need. The region's leaders need to open their eyes and ears if they want to heal their economies. Flying deaf, dumb and solo will not work.
