Problems in Europe, yet the ECB is accountable to no one
China’s economy had a woeful start to the year, seeing its slowest quarterly growth rate since 2009 and pointing to a loss of momentum for the world’s second-largest economy. China's statistics bureau said GDP grew at an annual rate of 7 percent in the first quarter, slowing from 7.3 percent in the fourth quarter of 2014. Other figures released on Wednesday suggest further weakness and many economists believe these numbers could pressure Beijing to act in an effort to juice the economy. Erin weighs in.
Erin sits down with Richard Werner – professor of international banking at the University of Southampton and creator of the term “quantitative easing.” Richard tells us what the four planks of the core mandate of any central bank are. He also explains how the ECB is different from its supposed model, the Bundesbank – and his answer highlights lack of accountability.
After the break, Erin is joined by Frances Coppola – associate editor at Pieria and blogger at “Coppola Comment.” Frances tells us why central banks like the Fed and ECB really matter and gives us her take on how the slow post-crisis productivity growth in Britain is a factor in the upcoming UK elections. She dives into the question of why fiscal policy has been sidelined and how this has impacted the eurozone.
And in The Big Deal, Erin, Edward and Bianca go over comments posted by Boom Bust viewers online.
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