Positive Money Letter to ECB President Mario Draghi
On 12 September 2019, Mario Draghi, who was still President of the ECB but was nearing the end of his term, gave a press conference in which he made some very interesting statements:
" Monetary policy alone is insufficient to restart inflation and growth in the Eurozone ".
“ We have done ours, now it's up to governments. Within the Board there was unanimity on the fact that fiscal policy should become the main tool to increase domestic demand ”.
" All countries should step up their efforts to achieve a more growth-friendly composition of public finances ."
Furthermore, in response to a question from the member of the Belgian ecological party P. Lamberts, Mario Draghi wondered about the QE that injects liquidity into the financial system:
“ Is this the best way to allocate liquidity, if you have goals like climate change and reducing inequality in mind? Well, probably not. There are probably several ways to do this. And indeed some of the new ideas on monetary policy like MMT, I like a recent article presented by various authors, including prof. Fischer and others would suggest different ways of funneling money into the economy. Now these are objectively quite new ideas. They have not been discussed by the Board of Directors and therefore we should look into them. But they have not been tested ”.
In practice, Mario Draghi asked for greater intervention by the state with its economic and fiscal policies, because its monetary policies alone were not sufficient to achieve the target of 2% inflation and economic growth.
The opinion that Mario Draghi expressed on possible measures of " helicopter money " is very interesting, declaring that the ECB did not address the issue because " Handing over money to people represents a fiscal policy, not a monetary one ".
This statement confirms that monetary sovereignty, that is, the creation of money, falls within the scope of fiscal policies and not monetary ones, as we have been arguing for some time.
The letter of Positive Money
As President of the Positive Money association, I immediately decided to write a letter to Mario Draghi, in which I communicated to him that I appreciated his words and above all that I had grasped a closeness to our proposals to overcome the economic crisis.
For this reason, given that his mandate at the ECB was due to expire on 31 October 2019, I asked him for his possible availability for a public or private debate on these issues, to compare our ideas to improve the world and make it closer to needs. of human beings and the environment.
This is the letter I sent to Mario Draghi on 22 October 2019, with a certified certified email message addressed to the official email at the European Central Bank.
Mario Draghi's letter of reply
To my utter disbelief and amazement, the then President of the ECB Mario Draghi, replied the next day with his autograph letter, sent in advance by email, in which he thanked me for " the kind letter of 22 October with which he retraces the steps of the ECB press conference held on 12 September and invites me to discuss it at an event to be organized in the coming months “.
" I am honored by the invitation that with regret it is not possible for me to accept " he continues in the letter and concludes by explaining that " The mandate as President of the ECB ends on 31 October and at the moment I prefer not to make commitments for the following period ".
Positive Money Letter to the appointed Prime Minister Mario Draghi
On February 3, 2021, the President of the Republic Sergio Mattarella appointed Mario Draghi, accepted with reserve, to form a technical-institutional government following the resignation of the Conte II government.
Given the delicate situation in which the country finds itself and the sensitivity shown by Prof. Mario Draghi on the occasion of our previous correspondence, we decided to send him a new letter to show him our willingness to collaborate in this enterprise, providing him with all the documentation on our Economic Renaissance Plan worth 1000 billion euros in two years, which became the Senate's bill 1945.
We will see if and what he will respond, and we will have a few more elements to understand which side Prof. Mario Draghi is on right now, if on the side of our country or on the side of banking and financial power.
Because THEY won't give up easily, but WE WILL NEVER give up.
The currency will be owned by the citizens and free from debt.
© Fabio Conditi, President of the Moneta Positiva association
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The article Positive Money Letter to ECB President Mario Draghi comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lettera-di-moneta-positiva-al-presidente-bce-mario-draghi/ on Tue, 09 Feb 2021 11:51:20 +0000.