1. “Whatever It Takes” Section A
Group C: Meghan Hom, Tom James, Greg Jasinski, Byung Jeon, Parsh Jain

2. Eurozone Crisis
Began in 2009, in the aftermath of the U.S. Financial Crisis
European nations such as Greece bordered sovereign default
Bond yields skyrocketed as panic filled the markets
Bailouts and Turmoil lead to the decline of the Euro

3. Mario Draghi President of ECB 2011-Present
MIT Graduate with working experience at Goldman Sachs
Spoke at The Global Investment Conference in London on July 26, 2012 regarding the future of the European Economy
“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”

4. Quantitative Easing
When a central bank purchases government securities to increase the money supply and encourage lending and investment
Can also be used to increase inflation
Could also cause “stagflation”
Where inflation rates increase but the economy stays stagnant

5. Quantitative Easing
Some of the ways quantitative easing is accomplished:
Providing liquidity to banks, making it easier for them to give loans to companies
Increasing the money supply, depreciating its exchange rate with other countries
Lowering the yields on sovereign bonds, making it easier for governments to borrow on financial markets

6. European Central Bank Instability in the Euro due to the debt crisis
“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” – Mario Draghi July 26, 2012
Promise boiled down to printing unlimited money to combat “harmful” investors
Fiat currency is backed by confidence in the government
If the general public didn’t have confidence in Draghi, the Euro would have continued to sink

8. Bank of Japan
In September 2016, the Bank of Japan introduced Quantitative and Qualitative Easing
2016 statement - “inflation overshooting committing”
Draghi like statement
Refuted statements because bond investors were increasingly testing the central bank’s resolve
Tried to control long and short term interest rates through market operations

9. Sentiment and Outcome
ECB ended up buying back bonds of its distressed countries(Outright Monetary Act), however it was much later in 2015 and Eurozone economy improved before the action occurred
The speech was able to bring consumer confidence up and bring bond yields down throughout the Eurozone
Stocks hours after speech
Greece returns to the market(2017)

10. Conclusion Traders continue to be bullish on the euro today
Growth in the Euro economy is solid and broad-based
Meghan
"bullish" means that an investor believes that a stock or the overall market will go higher, and "bearish" means that an investor believes a stock will go down, or underperform.
Following strong growth rates in 2017, the recovery in the euro area has slowed down in 2018, however. The duration of the current expansion, which began in 2013, is still below the historical average. Its amplitude, the percentage gain in GDP relative to the trough, is also low by historical standards.
At the same time, downside risks to growth, notably related to the threat of protectionism and the rise in trade tensions, remain prominent. The outlook for US monetary policy moves and vulnerabilities in emerging markets add to the overall uncertainty, as does the limited progress on the Brexit discussion.

11. Works Cited