The Draghi Deal
That seems a sensible compromise, given all the competing risks. Indeed a similar deal might well make sense for the United States.
My more liberal friends argue, based on Keynesian principles, that we need dovish fiscal policy as well. They often argue for short-run fiscal expansion coupled with long-run fiscal contraction. The problem is that fiscal policymakers cannot bind their future selves. It is hard to make commitments to future fiscal contraction credible, especially as short-run actions expand the budget deficit.
My more conservative friends argue, based on monetarist principles, that a dovish monetary policy risks future inflation. In my view, however, there are bigger risks than inflation just now. They include prolonged high unemployment and meager growth.
So I see Draghi as a fiscal hawk and monetary dove (at least under present circumstances). I wonder, which U.S. central bankers are in the same camp?