Mario Draghi is an Italian economist and banker who has been governor of the Central Bank of Italy since January 2006.
Draghi has been tagged as the favorite to be take the helm for the next eight years as president of the European Central Bank (ECB) when Jean-Claude Trichet steps down in October later this year.
Why Do You Care?
The euro crisis is a mess. Germany's economy is flourishing, expected to expand another 2.3 percent this year, while the rest of the members in the 17 nation union are in recession. Price pressure is increasing. As the new ECB president, Draghi would be charged with the near impossible task of keeping consumer price increases under 2 percent. But, the euro zone inflation rate was already at 2.4 percent by January.
The ECB's independence is also in question and inflation may be waiting in the wings. EU leaders are struggling to keep the euro together. If printing more euros is the solution for providing more stability to weaker member economies, then the inflation rate will rise even more. The ECB will cut interest rates and price stability will go out the window.
The global economy seems to be headed for a tripartite currency system, consisting of the U.S. dollar, the euro, and the Chinese yuan. But the eurozone crisis clearly shows that the euro is not yet ready for prime time.
Mario Draghi might have the historic task of making that possible.
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