Mario Draghi Prays to the Monetary Gods

In Classical Europe, priests sacrificed pigs and sheep to appease the gods. These days, central bankers announce obscure monetary stimulus measures to boost the economy. The interventions are designed to bring comfort, but neither stands up to much empirical scrutiny. The European Central Bank wants to offset the impact that a China-led global economic slowdown is having on the eurozone. On Thursday, it lowered interest rates to a record-low minus 0.5%, announced new bond purchases and lowered the cost at which banks can draw…

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