Moments ago, during his testimony before the European Parliament Mario Draghi made two very bold statements:
- DRAGHI SAYS HALF OF EURO-AREA RECOVERY DUE TO ECB POLICY
- DRAGHI: QE IS WORKING
Well, until recently Draghi could point to the DAX or the Stoxx 600 and make that allegation; however following the recently collapse in European stocks he no longer can. So he is forced to revert to the one chart that actually does show whether the ECB’s QE is boosting the all important lending channel.