When it comes to macroeconomics, the true basis of effectiveness is more than just numbers – it’s the voice of the people.
Now this is different from just having a large following at Twitter or something unless you’re a marketing endorser. For one, “followers” in most platforms are mainly about having the likeable factor which actually speaks more of popularity rather than real value.
For this one, European Central Bank president Mario Draghi. True, he’s got followers, but not many knows him. Not the common people. Not even many of our professionals. This is because not many understands, and more so are entertained by economics. Yet for such crucial positions, candidates should be chosen even more carefully, where knowledge over being likeable is a priority.
Well, Draghi is an accomplished Italian banker and economist who took over the ECB reins back in November 2011 from Jean-Claude Trichet; but, if you stop on “accomplished” alone – Europe would suffer more. The world included.
Goals are accomplished not on qualifications but understanding… See, was Trichet under qualified? No. But why hasn’t the Euro zone crisis been solved yet? Didn’t Trichet understand the situation? Sure he did. So?
This understanding is your base. Solutions and alternatives depends on your intellect, imagination, and creativity; while success depend on your courage, timing, and execution. But then, Trichet’s time has ended.
And what about Axel Weber? He backed out for one; and besides, you may mention all the other candidates for the post – sure, they have their points but it’s Draghi who got the job.
Recycle. Then, has Draghi been effective? Indeed, he managed to ease some investor concerns over the region but while Europe is not totally off the cliff, skepticism lives. Here are the hot keys…
LEARNING ABILITY. When did the recession start, 2007? How well has he monitored its evolution? In this case, Draghi should have learned what didn’t work all those years until his assumption of the ECB presidency; and what has not been tried as well.
MEASURES TAKEN. One of the goals is to keep the Euro zone intact, and so far, it is. But how long can you keep it this way when the “flow of money” has just been of a limited cycle? Yes there was the bond-buying scheme yet how has it gone so far?
At any rate… we have to look at the bigger picture. Draghi has just been on the job a little over a year; though what we need is a timetable and more concrete actions.
PEOPLE EFFECT. Inflation. Interest rates. You don’t even need those data. Notice how many are relying on food stubs? On unemployment benefits? Sure Draghi is no head-of-state but with all those protests in various parts of Europe, obviously, Draghi has a long way to go. Could the World Economic Forum help? With this bind, any brainstorming and genuine cooperation could work wonders.
What’s your take?