It is really dramatic! Central bankers and economists --all over the place-- fail to manage adequately their discipline and their prescription for how money should enter the economy. Banks, 5+ years after the beginning of the crisis, have not been capitalized (e.g., in Greece), and global "too-big-to-fail" have not been addressed. The main problem of the eurozone is --*explicitly* mentioned by Mr Draghi-- the broken monetary policy transmission mechanism, which surely cannot function since the eurozone and the global banking system are still in ruins!



Instead of taking on the weight of global central bankers' persistence on fractional reserve banking with its inherent bank-run problem, you still resort to the same vulgarity about "moral hazard"!!! Sir Turner, there is *no* political institution over ECB's mandate! There can never be any moral hazard! The only cards to be played are at the hands of ECB! Not even judges can question the time (if any) at which the ECB will try to reverse any monetary financing of fiscal policy.



The banks are given time and another attempt is made to permanently rip off the domain of politics of its role! Sir Turner, this is unspeakable. Coordination of fiscal policy under the direction and reign of the Central Bank is u n d e m o c r a t i c!!!



Draghi's claim is:

"Stronger coordination among the different national fiscal stances should in principle allow us to achieve a more growth-friendly overall fiscal stance for the euro area."

The only directions named for this coordination is the "growth and stability pact," and the following inequality enhancing recipe.



Draghi's proposals are about relaxing taxation for companies and cutting down expenses on social infrastructure, covered under terminology of high and low fiscal multipliers --not about stimulus! The only stimulus discussed is at the EU level, which is fine (though accompanied with some unnamed "complementary actions").



This cryptic, openly undemocratic speech, clearly talks about the non-purpose of the eurozone. Sir Turner, if you are delighted about Draghi's acceptance of the combination of monetary and fiscal policy, and even more of the possibility of monetary easing in the eurozone, eurozone is not really a place for any pleasant thoughts....