Frankfurt letter, week beginning April 11

-The European Central Bank

The European Central Bank (ECB) has signaled that it will take additional measures to those already taken last month against low inflation.

“The European Central Bank will continue to do whatever it takes to reach its price stability objective,” Vice-President Vitor Constancio said in a speech in Brussels on Thursday.

Peter Praet, the ECB's chief economist also said if further adverse shocks materialize, the bank will take measures to recalibrate once more commensurate with the severity of the situation.

As a result, it seems that the ECB’s “whatever is needed” approach will continue.

-Echoes of Panama Papers in Germany

German Finance Minister Wolfgang Schaeuble has called for an international register to list the real owners of shell companies.

Speaking to public broadcaster ZDF, Schaeuble also said that an agreement between about 100 countries to automatically exchange tax information, which is due to come into effect in 2017, should also cover countries such as the U.S. and Panama.

-News from Germany

Spokesman for the German Finance Ministry, Martin Jaeger, said discussions in Germany about the effectiveness of the ECB’s monetary policy is legitimate.

German media quoted a report from Dow Jones in which Schaeuble appeared to blame the rise of the populist AfD party in Germany on the ECB's accommodative monetary policy stance.

He said that Schaeuble may speak with ECB President Mario Draghi this week in Washington on the sidelines of an International Monetary Fund meeting.

-The week ahead

This week, the global markets will monitor the Eurozone inflation rate, industrial production and international trade in goods data, as well as news from the ECB.

In Germany, investors will focus on inflation rate and data on insolvencies.

12 Apr,2016