and he has the data to support that statement at his fingertips. “ the sale of durable consumer goods has grown by 4. 5 % in a year, share prices have risen by 13 % since the start of this year, the price of capital for non - financial firms is 7. 7 % – which is similar to pre - crisis levels. for banks, too, funding has become considerably cheaper. ” in short, financial conditions have improved. “ even though some critics said that quantitative easing would be less effective here than in the united states, because much of the financing is provided by banks. they forget that banks are listed on the stock exchange too. ” but constancio disagrees that things are going well enough to already start tapering off quantative easing – inflation expectations are too low for that. until inflation comes sustainably close to 2 %, the ecb will continue to intervene in the financial markets, with the attendant risks such as rapid asset price increases and the disadvantage of low returns for pension funds. the sharp depreciation of the euro is another side effect. does constancio think that will result in a global currency war? “ exchange rates reflect the economic situation in the various countries. the us economy, for example, is in a completely different phase of the business cycle than europe. that explains bis central bankers ’ speeches why monetary policy here is not the same as in the united states. the g20 also look at it that way. ’ do you feel responsible for the fact that dutch pension funds and insurance firms are struggling with the current low market interest rates? “ all policy measures have their side effects. there is collateral damage, but we have a mandate and that states that we must maintain price stability. having said that, it is important to note that insurance firms especially have not done so badly in recent years. the value of their assets increased precisely on the back of the lower interest rates and they were able to push up the profit per share, more so than the banks could in any case. low interest rates are now causing problems, but it is exactly our objective to bring things back to normal. once we have price stability, interest rates will also go up again. ” “ here and there, we see that the maturity of the investments is out of sync with the maturity of liabilities. we also see that few strategies have yet been designed that would render insurance firms immune to this mismatch. that is why they should be cautious about the promises that

vitor constancio : interview in het financieele dagblad interview with mr vitor constancio, vice - president of the european central bank, in het financieele dagblad, conducted by mr marcel de boer and ms saskia jonker on 29 april 2015 and published on 4 may 2015. * * * front page the ecb ’ s controversial purchase programme will not be halted prematurely, even if the economy in europe is picking up more rapidly than expected, said vitor constancio, vicepresident of the european central bank ( ecb ), in an interview with het financieele dagblad. “ the programme is working well. why should we think of discontinuing it when inflation is negative and inflation expectations are nowhere near our medium - term goal of close to 2 %? ” so that option is not even on the table for the executive board of the ecb. “ we only started it a few months ago. it would be very strange if we were already talking about stopping. ” critics argue that the ecb is creating bubbles in asset markets because all markets are being driven up by the large - scale purchase programme ( known as quantitative easing ). but the portugese central banker is not afraid of that. “ there is no generalised asset overvaluations in the euro area. ” he acknowledges that quantitative easing is making investors take more risks because that is more profitable. “ that is partly what we want to achieve through our programme, this so - called portfolio shift. the only danger is that the “ search for yield ” might get out of hand. we need to keep a close eye on that. it is the job of macroprudential policy, not of monetary policy, to avoid the build - up of bubbles ”. article / q & a the view from the 41st and top floor of the european central bank ’ s new premises is overwhelming : huge buildings that suddenly look quite small, bright green patches of spring foliage, and aeroplanes in the distance glistening in the sun as they take off from frankfurt. vitor constancio contentedly takes in his surroundings as he enters the meeting room, slightly late but completely relaxed. slight of stature and wearing a grey suit, constancio, a portugese national, has every reason to be pleased : the ecb ’ s purchase programme is working, he says. “ the european economy is moving in the right direction. ”