Draghi's WhatEverItTakes Is Failing

“But the problem [with monetary policy] is not so much what we can do, but what we ought to do in the short run, and on this point a most harmful doctrine has gained ground in the last few years which can only be explained by a complete neglect – or complete lack of understanding - of the real forces at work. A policy has been advocated which at any moment aims at the maximum short-run effect of monetary policy, completely disregarding the fact that what is best in the short run may be extremely detrimental in the long run, because the indirect and slower effects of the short-run policy of the present shape the conditions, and limit the freedom, of the short-run policy of tomorrow and the day after. I cannot help regarding the increasing concentration on short-run effects - which in this context amounts to the same thing as a concentration on purely monetary factors - not only as a serious and dangerous intellectual error, but as a betrayal of the main duty of the economist and a grave menace to our civilisation”. -  F.A. Hayek

"Whatever it takes" is of course nothing less than propping up banks and desperately trying to inflate the money supply. By the looks of things, he seems to be failing once again as the various money supply growth rates have declined sharply since last summer. It is unknown whether Draghi and his central planning team in the brilliant new ECB building, lavishly built during challenging economic times for member countries, ever did study Hayek. What is blatantly obvious however is that his short term focus will wreak havoc with long term economic progress in the eurozone.