Say hello to my little friend, again

The WSJ is reporting comments from another ECB member, Noyer, reiterating and using the ‘transmit’ line that Draghi so blantly utilized. “ECB Noyer: Will make every effort to transmit monetary policy in best conditions possible…Wants EFSF funds used on market, but ECB ALSO ACTIVE.” Big caps are mine as currently the ECB is not active. “We have ensured policy transmission in past and continue to work on it.” I’ve used this line before in reference to central bankers and their money printing press but here it is again, “Say hello to my little friend.” For central bankers though, the effectiveness of their little friend has waned as they can’t avoid the law of diminishing returns. They’re going to need a bigger friend.

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