RAPID responses

Draghi’s limits

[Re: Draghi’s plan will merely buy a bit of time for the Eurozone, Friday]

The European Central Bank’s (ECB) programme can’t “theoretically be unlimited in scale” if Mario Draghi sticks to his promise to sterilise – that is to offset – purchases of dodgy sovereign bonds with sales of other assets. The ECB only has so many euros worth of other assets to sell. (It would be nice if they would tell us how many. I can’t infer it from their balance sheet.) If they do sterilise, it means starving the private credit market to feed the sovereign credit market.

Lawrence H White, professor of economics at George Mason University, Virginia


Not the state’s job

[Re: Cable is wrong on state aid rules and his plan for a business bank, yesterday]
It beggars belief how the government can think that yet another nationalised bank is the answer to our economic problems. Both sides of the Atlantic are littered with failed state subsidised banks. Why do politicians think that this time it will be any different?

Ike Nwobodo

According to the Public Accounts Committee, the government’s last attempt at an industrial strategy – its Regional Growth Fund – has cost £1.4bn but delivered only 2,442 new jobs.

Michael Oliver



It’s good that the Bank of England governor job is being advertised. But it’s unlikely the selection process will be quite as transparent.

No one in politics seems to have the guts to say no to trendy ideas like an industrial strategy. Vince Cable should know better.

European banking union means money will be printed so that banks can buy government debt and then be bailed out when they go bust.

Why does anyone get excited by German Constitutional Court rulings? It’s always: “We’re not happy, but we won’t stop you.”