Mario Draghi will soon depart his role as the European Central Bank President.
The departure is set for November 1st. The role will then be filled by Christine Lagarde. He is widely known for weathering the eurozone through economic crises and saving the single currency. However, recent actions have made his tenure as president more controversial.
Draghi has been working towards increasing the eurozone’s inflation rate to 2%. However, at the moment it stands at 0.8%. The increase in inflation would be possible primarily through a monetary stimulus. Draghi has also been pushing for stronger quantitative easing. This means that he wants to increase the number of bonds that the ECB buys back from individuals.
Additionally, Draghi has been pushing the ECB’s interest farther and farther negative. In September, Draghi pushed the rate down further to – 0.5%. Draghi is also being criticized for not unveiling his plans without time for debate.
“There was no time to discuss the whole package,” Austrian central-bank Governor Robert Holzmann said.
Some worry that if the ECB continues to buy back bonds, they will reach their buyback limit soon. Draghi thinks otherwise. This monetary policy has created a polarizing environment in the ECB. Lagarde will be tasked with deescalating this polarization.