Indeed, recent MI has suggested that there has been some direct lending  9  And although the aggregate US corporate sector cash position is strong, it is likely to mask significant heterogeneity in the distribution of firms, with a disproportionate share of the cash held by the largest investment grade businesses. 8  BIS central bankers’ speeches  activity to mid-sized corporates in the UK by non-bank institutions such as dedicated loan, private equity and pension funds (although the absolute amounts are still very small). Chart 13  Chart 14  Issuance of sub-investment grade corporate debt by region(a)(b)  Corporate bond valuation measure(a)(b)  Sources: Dealogic and Bank calculations. (a) Emerging economies includes Africa, Caribbean, Indian subcontinent, Latin America, Middle East, North Asia and South East Asia. “Other” includes Australasia and Japan. Includes issuance in all currencies. (b) 2011 data are to 3 June 2011  Sources: Bank of America Merrill Lynch, Bloomberg, Thomson Reuters Datastream and Bank calculations. (a) Shows the difference between actual and estimated equilibrium spreads as a percentage. Positive numbers represent overvaluation, negative numbers undervaluation. (b) Equilibrium corporate bond spreads are defined as the total estimated credit component plus a five-year rolling average of the illiquidity premia. Full details of the approach used for the decomposition of corporate bond spreads can be found in Churm, R and Panigirtzoglou, N (2005), “Decomposing credit spreads”, Bank of England Working Paper no. 253.
Despite this, his critics point to the fact that he has left behind a European economy that is “drugged”, with low growth, rates at zero and inflation very far from the objective. Monetary policy is not the reason for this; it’s been the main driver of the economic recovery and growth in Europe. 11 million jobs have been created, in no small part thanks to monetary policy. This is the main thing, although there are collateral effects. The problem we have at the moment is that these monetary policy decisions need to be complemented by other instruments. Sometimes it seemed like you were not exactly among Mr Draghi’s most ardent supporters. I have always supported President Draghi. But when you heard him being talked about as the saviour of the euro or the person who had rescued Spain, it didn’t sit well with you. Well, he didn’t see it like that either. In Spain, we rescued ourselves, off our own backs, with the help of our European partners, including the ECB. Mr Draghi made a key contribution, but there’s no single saviour here. It was a set of circumstances and a matter of everyone carrying out their responsibilities in their individual roles. As Vice-President will you continue to appear alongside President Lagarde? I have no idea. I suppose it will continue like that. It’s an unwritten rule, a tradition. Traditions can change, but they can also be of value. Brexit, trade and currency wars, geopolitical tensions.