Tough love is better for Athens in the long term
Both by chance and design,the emergency policy erected by the European Central Bank to tackle the financial crisis has,so far,played out quite beautifully.By introducing a limited package of measures aimed at flooding the banking system with easily accessible and cheap liquidity,the ECB last year restored some sense of normality to the eurozone’s financial markets. As 2009 wore on,the liquidity crunch faded and risk premiums in the money markets dropped steadily. Banks used the liquidity provided by the ECB to fund profitable ①carry trades on corporate and government bonds,prompting a massive compression of spreads in credit and sovereign debt markets. As the financial sector healed and recovery gained traction,the need for a timely ②monetary policy exit became apparent. Aware of the perils of procrastination,last December the ECB announced the ③withdrawal of some liquidity measures. Then,along came the Greek fiscal crisis with the potential of unwinding the progress already achieved. Rather than bow to pressure and delay the exit,the ECB rejected the notion that monetary policy should accommodate member states’ fiscal troubles. Implicitly, the ECB regarded the Greek affair not as another exogenous shock meriting further policy stimulus,but as a demonstration of the dangers of excessive liquidity. This explains why the ECB’s commitment to an exit did not wane as investors’unease spread from Greece to elsewhere in Europe. Could this posture be construed as stubbornness born out of a rigid fidelity to an ④inflation-fighting mandate?Not really. A timely exit will prompt a more resolute fiscal consolidation where it is most needed. Here is how. Exiting would make ECB funding harder to get and dearer. Banks would scale down carry trades on sovereign bonds,thereby removing the subsidy to public debt imparted by abundant liquidity. This would hurt primarily the government paper of the most indebted countries,whose higher yields made them the main beneficiaries of carry trades. The resulting higher funding cost would encourage fiscal rectitude for the long haul. As recent developments attest,no eurozone member will be allowed to default,given the catastrophic consequences that could ensue. The risks include contagion to other vulnerable countries and a eurozone implosion owing to heavy exposure of European banks to peripheral debt:according to the Bank for International Settlements,about 90 per cent of the foreign debt–corporate and sovereign–of Greece,Portugal and Spain is held by other European countries‘banks,mainly German and French.However inevitable,the eurozone’s implicit bail-out guarantee generates moral hazard in the fiscal sphere;something the ECB should fight strenuously–if need be–by rushing its exit strategy. Aside from fostering fiscal soundness,an exit will help money markets normalise.One pernicious side effect of the ECB’s policy was to get banks addicted to easy central bank money. Consequently,demand for interbank liquidity was artificially subdued and market interest rates sank to levels that discouraged the supply of funds,especially in longer maturities. But as the exit unfolds,demand for market funds automatically increases,rates rise and the yield curve steepens. That stimulates money markets–indispensable for kick-starting bank lending to businesses and households and for sustaining economic recovery. The ⑤liquidity squeeze has withered,and so should the policy package assembled to address it. Yet an exit might not be achievable in full; due to a devilish detail. Amid the emergency measures,the ECB relaxed the collateral rules for the liquidity-providing operations,but committed to reinstate the original criteria in 2011. By then,as things stand,the eligibility of the Greek bonds will be dependent on Moody’s maintaining its appraisal of Greece,since the other credit agencies’ratings are too low to comply with the original collateral rules. If Moody’s downgrades Greece,its bonds cease to be eligible for ECB refinancing. That could spark a sell-off of Greek debt,with systemic implications akin to a default. If push came to shove,the ECB would probably maintain the exceptional collateral regime. The credibility of the ECB’s exit strategy is,thus,hostage to Moody’s mood. Hopefully,by 2011,acute anxiety about Greek fiscal sustainability will have abated;perhaps,partly due to the ECB’s tough love.
译文梗概:
退出策略:欧洲央行不动摇
欧洲央行(ECB)为应对金融危机出台的应急政策,迄今收效良好,通过这些政策,欧元区金融市场在某种意义上恢复了常态。为此,欧洲央行于去年12月宣布撤回部分流动性措施。 但希腊财政危机爆发,可能使业已取得的成就一笔勾销。不过,欧洲央行没有屈从于压力,它不想推迟执行退出策略,因而拒绝接受货币政策应根据成员国财政困境进行调整的观点。欧洲央行的态度表明,在它看来,希腊事件并非又是一场外生冲击,值得欧洲央行给予进一步政策刺激,反而证明了流动性过剩的巨大危害。这一点可以解释,为什么即使在投资者不安的情绪从希腊蔓延到欧洲其它地方之时,欧洲央行对退出计划的承诺也未见减弱。 这一姿态可否理解为由于一味忠诚于抗通胀使命而产生的固执?不见得。及时退出可以帮助最需要的地区更坚决地巩固财政状况。 如果穆迪调低对希腊的评级,该国的债券将不再有资格获得欧洲央行的再融资。这可能引发一轮针对希腊债券的抛售风潮,其系统性影响不亚于违约。如果到了迫不得已的地步,欧洲央行可能会维持目前的非常规担保机制。因此,欧洲央行退出策略是否可行,还要看穆迪的意愿如何。希望到了2011年,对希腊财政可持续性的深切担忧将有所缓解——倘若如此,或许在一定程度上要归功于欧洲央行的“严是爱”。
(文章来源:FT中文网)
点评:
①、carry trades,财经术语,可简单地理解为以下投资方式:借入利率较低的某种货币,投资于利率或预期收益率较高的金融资产,可笼统译为“套利交易”或“利差交易”。 ②、monetary policy,货币政策,the decisions a monetary authority makes to manages the money supply。 ③、withdrawal,意为收回,撤退或者退回,在文中指欧洲央行宣布一些回收流动性的措施。 ④、inflation-fighting,可译为抑制通货膨胀,inflation为通货膨胀,指物价普遍上升,如果工资没有相应增长,则意味着居民购买力下降。 ⑤、liquidity squeeze,流动性短缺或头寸紧张。 |