Articles by Paul Mielgo

Paul has worked for AmericaFotografía Paul Mielgo British and Spanish TV, radio and printed media, as an editor and television anchor for the Bloomberg Spanish channel in London and Madrid for twelve years, specialising in international affairs and financial markets. He currently serves as an editor for Radio Intereconomía (Spain) and has also worked for international organisations like OSCE and the EU as an electoral observer. He has an MA degree in journalism from El País/Universidad Autónoma in Madrid.

The imminent arrival of QE brings euro-dollar parity closer

The euro has depreciated relative to the US dollar to its lowest level in almost a decade. In the meantime, time is running out for the European Central Bank (ECB) to implement a massive purchase of sovereign bonds aimed at quelling the threat of deflation. This much-anticipated operation, called Quantitative Easing (QE), will most likely be officially announced by ECB president Mario Draghi at the upcoming meeting on 22 January. The European currency has plummeted this year under the 1.1747 dollar threshold, the exchange rate at which it was first introduced in 11 European countries on 1 January 1999. The euro continues to weaken after having lost 12% of its value relative to the US dollar in 2014, the sharpest annual fall since 2005.

The threat of Deflation

In the past inflation was the number one enemy of economists. Nowadays, you might find that the exact opposite is true, and that a fall in prices is now in the spotlight. Deflation has arisen as the main threat to the economy, and the European Central Bank (ECB) is under pressure to take decisive measures against it. Prices in the Eurozone have seen the first year-on-year decline in five years, according to Eurostat.

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