{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='ECB’s Draghi defends low rates policy against German complaints' data-url='/boclips/videos/6878fc4b859c693875d0f7f3' data-video-url='/boclips/videos/6878fc4b859c693875d0f7f3' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nECB’s Draghi defends low rates policy against German complaints\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003eEuropean Central Bank President Mario Draghi has responded to complaints from German Finance Minister Wolfgang Schauble and other top officials in Berlin that negative interest rates are hurt thrifty savers and weighing on the banking...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003eEuropean Central Bank President Mario Draghi has responded to complaints from German Finance Minister Wolfgang Schauble and other top officials in Berlin that negative interest rates are hurt thrifty savers and weighing on the banking sector. \u003cbr/\u003e\u003cbr/\u003e Speaking at the annual meeting of the Asian Development Bank in Frankfurt, Draghi defended the low rates: “They are not the problem. They are the symptom of an underlying problem, which is insufficient investment demand across the world to absorb all the savings available in the economy. And so the right way to address the challenges raised by low rates is not to try and suppress the symptoms, but to address the underlying cause.”\u003cbr/\u003e\u003cbr/\u003e  “There is no alternative”, ECB #Draghi defends low interest rates at #ADBFrankfurt pic.twitter.com/jEZzDhkfhk— Stephan Scheuer (@StephanScheuer) 2 May 2016\u003cbr/\u003e\u003cbr/\u003e Draghi expressed some sympathy for institutions coping with the effects of the Bank’s policies: “Very low rates are not innocuous. They put pressure on the business model of financial institutions, banks, pension funds and insurance companies by squeezing interest income. And this comes at a time when profitability is already weak, when the sector has to adjust to post-crisis leveraging in the economy and when rapid changes are taking place in regulation.”\u003cbr/\u003e\u003cbr/\u003e But the ECB head insisted high rates make investing unattractive which would keep the eurozone economy in recession, whereas relatively low rates encourage investment and consumption.\u003cbr/\u003e\u003cbr/\u003e “The answer to raising rates of return is clear: continued expansionary policies until excess slack in the economy has been reduced and inflation dynamics are sustainably consistent again with price stability,” Draghi told the gathering. “There is simply no alternative to this today.”\u003cbr/\u003e\u003cbr/\u003e “The only potential margin for maneuver is in the composition of the policy mix, that is, the balance of monetary and fiscal policy,” he added.\u003cbr/\u003e\u003cbr/\u003e  Speech Mario Draghi:  Addressing the causes of low interest \u003ca href='https://t.co/7DiuItKy7N' target='_blank' rel='nofollow'\u003erates\u003c/a\u003e— ECB (@ecb) 2 May 2016\u003cbr/\u003e\u003cbr/\u003e Draghi got support from the head of Germany’s Bundesbank who said “[Central banks] can’t promise minimum returns for savers because they must focus on the broader economic impact of their monetary policy.”\u003cbr/\u003e\u003cbr/\u003e Jens Weidmann, who is also a member of the ECB governing council, said low inflation makes the its approach appropriate, but it must not last longer than absolutely necessary. \u003cbr/\u003e\u003cbr/\u003e He told an audience in Munich: “Long term rates depend equally on long-term inflation expectations and on the economy’s growth prospects. Interest (income) for investors doesn’t fall from the sky, it must be earned by companies.”\u003cbr/\u003e\u003cbr/\u003e Weidmann also repeated called for fiscal reform.\u003cbr/\u003e\u003cbr/\u003e In the past Germany has criticised politicians in other countries for doing exactly what it is doing now.\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='action-container flex justify-between'\u003e\n\u003cbutton aria-expanded='false' aria-label='Read more description' class='rp-full-description' type='button'\u003e\n\u003ci class='fai fa-solid fa-align-left'\u003e\u003c/i\u003e\n\u003cspan id='read_more'\u003eRead More\u003c/span\u003e\n\u003c/button\u003e\n\u003cdiv class='rp-report'\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv aria-labelledby='resource-details-heading' class='rp-info-section'\u003e\n\u003ch2 class='title' id='resource-details-heading'\u003eResource Details\u003c/h2\u003e\n\u003cdiv class='rp-resource-details clearfix'\u003e\n\u003cdiv class='detail'\u003e\n\u003cdl\u003e\n\u003cdt\u003eCurator Rating\u003c/dt\u003e\n\u003cdd\u003e\u003cspan class=\"star-rating\" aria-label=\"3.5 out of 5 stars\" role=\"img\"\u003e\u003ci class=\"fa-solid fa-star text-action\" aria-hidden=\"true\"\u003e\u003c/i\u003e\u003ci class=\"fa-solid fa-star text-action\" aria-hidden=\"true\"\u003e\u003c/i\u003e\u003ci class=\"fa-solid fa-star text-action\" aria-hidden=\"true\"\u003e\u003c/i\u003e\u003ci class=\"fa-solid fa-star-half-stroke text-action\" aria-hidden=\"true\"\u003e\u003c/i\u003e\u003ci class=\"fa-regular fa-star text-action\" aria-hidden=\"true\"\u003e\u003c/i\u003e\u003c/span\u003e\u003c/dd\u003e\n\u003c/dl\u003e\n\u003c/div\u003e\n\u003cdiv class='detail'\u003e\n\u003cdl\u003e\n\u003cdt class=\"educator-rating-title\"\u003eEducator Rating\u003c/dt\u003e\u003cdd\u003e\u003cdiv class=\"educator-rating-details\" data-path=\"/educator_ratings/rrp_data?resourceable_id=91032579\u0026amp;resourceable_type=Boclips%3A%3AVideoMetadata\"\u003e\u003cspan class=\"not-yet-rated\"\u003eNot yet Rated\u003c/span\u003e\u003c/div\u003e\u003c/dd\u003e\n\u003c/dl\u003e\n\u003c/div\u003e\n\u003cdiv class='detail'\u003e\n\u003cdl\u003e\n\u003cdt\u003eMedia Length\u003c/dt\u003e\n\u003cdd\u003e1:07\u003c/dd\u003e\n\u003c/dl\u003e\n\u003c/div\u003e\n\u003cdiv class='detail'\u003e\n\u003cdl\u003e\n\u003cdt\u003eGrade\u003c/dt\u003e\u003cdd title=\"Grade\"\u003e9th - Higher Ed\u003c/dd\u003e\n\u003c/dl\u003e\n\u003c/div\u003e\n\u003cdiv class='detail'\u003e\n\u003cdl\u003e\n\u003cdt\u003eSubjects\u003c/dt\u003e\u003cdd\u003e\u003cspan\u003e\u003ca href=\"/search?grade_ids%5B%5D=259\u0026amp;grade_ids%5B%5D=255\u0026amp;grade_ids%5B%5D=256\u0026amp;grade_ids%5B%5D=257\u0026amp;grade_ids%5B%5D=258\u0026amp;search_tab_id=1\u0026amp;subject_ids%5B%5D=358379\"\u003eSocial Studies \u0026amp; 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