Also, Germany’s “five wise men” (Council of Economic Experts) and German Finance Minister Wolfgang Schäuble criticised ECB President Mario Draghi for his negative interest rate policy. Against this background, the ultimate question is quite straightforward: is central bank independence sufficient for price stability when the tail risk of deflation is visible and unconventional monetary policies last too long?
With the kind of organization of money transfers from abroad that we currently have in Serbia, it is soon going to be cheaper to fly to Belgrade by low cost airline than to send money via bank channels!