At that time, "Draghi and all of his colleagues (the decision was unanimous) chose not to cut the price for private-sector loans [below the 1% achieved with the "repeal"], even when he forecasts inflation to fall below the targeted 2% later this year." ... engineering, and technological education and research. He studied at the Massimiliano Massimo Institute[3] and graduated from La Sapienza University under the supervision of Federico Caffè with his thesis titled Integrazione economica e variazione dei tassi di cambio (English: Economic integration and variation of exchange rates). In 2015, Fortune magazine ranked him as the world's second greatest leader. After receiving a Jesuit secondary education and then graduating from the University of Rome , he studied economics at the Massachusetts Institute of Technology (MIT) in the United States under Franco Modigliani , who later won the Nobel Prize for Economics , and Stanley Fischer, future head of the … As such, Goldstein concluded, Draghi would leave more moves to national leaders Sarkozy and German Chancellor Angela Merkel and central banks, contrasting Draghi's actions with those of the Fed's Ben Bernanke. Draghi called for "massive investments" in young people and education. Failure of eurozone countries to harmonize their economies and create stronger institutions, he said, "puts at risk the long-term success of the monetary union when faced with an important shock." Mario Draghi studied at the Massimiliano Massimo Institute (founded by Ignatius Loyola in 1551), and subsequently graduated from La Sapienza University with an economics degree, and then became the first Italian to gain a PhD (in economics) from the Massachusetts Institute of Technology in 1976. He received a PhD in economics from MIT in 1976. Draghi was born in Rome. * * * It is a great honour to be speaking here today at the University of Bologna. [17] However, in February 2011 the situation became further complicated when the main German candidate, Axel Weber, was reported to be no longer seeking the job, reviving the chances of the other candidates. In light of slow political progress on solving the eurozone crisis, Draghi's statement has been seen as a major turning point in the fortunes of the eurozone. "We have not yet reached the stage of a genuine monetary union," the central bank president, Mario Draghi, said in a speech to the European Parliament in Brussels. "[39], In 2015, in an appearance before the European Parliament Draghi said that the future of the eurozone was at risk unless member countries gave up some independence and created more Pan-European government institutions. Draghi's ECB also promptly "repealed the two foolish rate hikes made by his predecessor ...Trichet [and] ... stepped up the bond purchases from struggling euro-zone nations" to help with the debt crisis, commentator Steve Goldstein wrote in mid-January, 2012. [35], In July 2012, in the midst of renewed fears about sovereigns in the eurozone, Draghi stated in a panel discussion that the ECB "...is ready to do whatever it takes to preserve the euro. Mr. Draghi has often urged eurozone governments to do more to improve their economic performance, for example by overhauling restrictive labor regulations. Faced with a slowing eurozone economy, the ECB has announced further measures to stimulate economic growth. Mr. Draghi has insisted that critical decisions by the bank be backed by consensus. 6. One commentator, Matthew Lynn, saw the ECB's injection of funds, along with Quantitative easing from the US Fed and the Asset Purchase Facility at the Bank of England, as feeding increases in oil prices in 2011 and 2012. 3. He is also governor for Italy on the Boards of Governors of the International Bank for Reconstruction and Development and the Asian Development Bank.[12]. We live-blogged Mario Draghi's presser and here's the recap. Discover the real story, facts, and details of Mario Draghi. 1. [18] On 13 February 2011 Wolfgang Münchau, associate editor of the Financial Times, endorsed Draghi as the best candidate for the position. Mario is the first of three children: Andreina, art historian, and Marcello, entrepreneur. 5. 4. [7] He is also a former board member of several banks and corporations (Eni, Istituto per la Ricostruzione Industriale,[8] Banca Nazionale del Lavoro and IMI). [27] Draghi began leading the Frankfurt-based institution when Trichet's non-renewable eight-year term expired on 31 October 2011. But we haven't really studied yet the concept. [41], Draghi is a member of the Group of Thirty founded by the Rockefeller Foundation. His father Carlo joined Banca d'Italia in 1922, later IRI and in the end Banca Nazionale del Lavoro. Mario was born in Baby Boomers Generation (1947). Mario Draghi, left, the European Central Bank president, with Luis de Guindos, the vice president. He was named President of the European Central Break in 2011 after 5 years as the Governor of the Bank of Italy. Mario Draghi’s birth sign is Virgo. [44][45][46][47], Beginning in 2013, Draghi was criticised in the context of the scandals rising around the bank Banca Monte dei Paschi di Siena (MPS)[48] which was making very risky deals. [9] He worked on the firm's European strategy and development with major European corporations and governments. Be on the lookout for your Britannica newsletter to get trusted stories delivered right to your inbox. [19] A few days later The Economist wrote that "the next president of the world's second-most-important central bank should be Mario Draghi". Mario Draghi is Former President at European Central Bank. The Trichet-Draghi letter (also known as letter of ECB to Italy) is a confidential correspondence by which, on 5 August 2011, the former and current ECB presidents Jean-Claude Trichet and Mario Draghi addressed to Italian government several requests in order to influence European support to drastic measures of economic rebalancing. "Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA," Trump wrote on Twitter. And believe me, it will be enough. President Mario Draghi insisted that Europe’s economy needed more stimulus, help drive inflation and growth back up. His mother, Gilda Mancini was a pharmacist. Mario Draghi is Former President at European Central Bank. Explore Mario Draghi's biography, personal life, family and real age. Draghi responded that the deals were "undertaken before my joining Goldman Sachs [and] I had nothing to do with them", in the 2011 European Parliament nomination hearings. [16] Then, in January 2011, German weekly newspaper Die Zeit reported, with reference to high-ranking policy-makers in Germany and France, that it is "unlikely" that Draghi will be picked as Trichet's successor. [6] During his time at the Treasury, he chaired the committee that revised Italian corporate and financial legislation and drafted the law that governs Italian financial markets. [28] Though France long backed Draghi's candidacy, the country held up the appointment toward the end, insisting that Lorenzo Bini Smaghi, an Italian official on the ECB's six-member board, cede his post on the board to a French representative. [25] He was approved by the European Parliament and the ECB itself[26] and on 24 June 2011 his appointment was confirmed by the European leaders. [49], Draghi is the father of Giacomo Draghi, an Italian financier. [33], In February 2012, Nobel prize laureate in economics Joseph Stiglitz argued that, on the issue of the impending Greek debt restructuring, the ECB's insistence that it has to be "voluntary" (as opposed to a default decreed by the Greek authorities) was a gift to the financial institutions that sold credit default insurance on that debt; a position that is unfair to the other parties, and constitutes a moral hazard. Mario Draghi: Sovereignty in a globalised world February 26, 2019 EU European Union Mario Draghi NAFTA University of Bologna It is a great honour to be speaking here today at the University of Bologna. Speech by Mr Mario Draghi, President of the European Central Bank, on the award of Laurea honoris causa in law from Università degli Studi di Bologna, Bologna, 22 February 2019. In December 2005 Draghi was appointed Governor of the Bank of Italy,[13] and in April 2006 he was elected Chairman of the Financial Stability Forum; this organization which became Financial Stability Board in April 2009 on behalf of the G20, bringing together representatives of governments, central banks and national supervisors institutions and financial markets, international financial institutions, international associations of regulatory authorities and supervision and committees of central bank experts. Navigate parenthood with the help of the Raising Curious Learners podcast. [50][51], Istituto per la Ricostruzione Industriale, International Bank for Reconstruction and Development, Order of Merit of the Federal Republic of Germany, Libera Università Internazionale degli Studi Sociali Guido Carli, "I compagni di classe del nuovo Governatore", "What price the new democracy? Mario Draghi. Giacomo worked as an interest-rate derivative trader at investment bank Morgan Stanley until 2017, a time overlapping with Draghi's presidency of the ECB. As Europe’s oldest university, it has been at the heart of education and learning in Europe for [42][43] For this reason, he is accused of having a conflict of interest as president of the ECB. Prima facie, it clearly involves complexities, both accounting-wise and legal-wise, for our view, but of course by this term "helicopter money" one may mean many different things, and so we have to see that. Some parties also see Draghi's former work at Goldman Sachs as a conflict of interest. He added that "the deals between the Greek government and Goldman Sachs had been undertaken before [his] joining of [the company]. 2. [1] In May 2019, Paul Krugman described him as "[arguably] the greatest central banker of modern times". This is true of the unconventional measures taken under my presidency and my successor Mario Draghi. The famous phrase "Whatever it takes", used by Mario Draghi at the helm of the ECB during the economic crisis of 2012, has entered the digital lexicon of Treccani, the Italian-language most prestigious encyclopedia. Mario Draghi, president of the ECB, in his press conference, said that ‘the weakening in economic data points to a sizeable moderation in the pace of the economic expansion that will extend into the current year’. See Mario Draghi's compensation, career history, education, & memberships. He now risks being remembered as the man who helped propel it over the cliff. The trade-off rested on the notion that an increase in the money supply could boost aggregate demand and stimulate employment, while keeping inflation expectations well anchored… Draghi was raised in Rome, where his father worked for the Bank of Italy (Italy’s central bank). Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree.... Help support true facts by becoming a member. Education 1977 PhD in Economics, Massachusetts Institute of Technology (MIT) 1970 Degree in Economics, Sapienza University of Rome Professional career Since June 2013 Chair of the Group of … They vastly underestimate the political capital that has been invested in the euro. [23][24], On 17 May 2011 the Council of the European Union – sitting as Ecofin – adopted a recommendation on the nomination of Draghi as President of the ECB. Draghi currently serves as president of the European Central Bank, … His primary income source is from being World Leader. In October, Mario Draghi will step down from the presidency of the European Central Bank (ECB) after having successfully led that institution for the past seven years. [10] After the revelation of off-market swaps used by Greece with the help of Goldman Sachs, he said he "knew nothing" about this deal and "had nothing to do with" it. [37][38], In April 2013, Draghi said in response to a question regarding membership in the eurozone that "These questions are formulated by people who vastly underestimate what the euro means for the Europeans, for the euro area. [2], Draghi was born in Rome. 2017 - 2020. The rationale for delegating powers to independent central banks evolved mainly from the experience of the 1970s. April 15 -- European Central Bank President Mario Draghi comments on quantitative easing and the euro-area economy. [20] On 20 April 2011 The Wall Street Journal reported that "Wolfgang Schäuble, Germany's finance minister, was open to Mr. Draghi being the ECB President". But it was unusual for him to suggest that the future of the eurozone could depend on whether countries heed his advice.[40]. Mario Draghi’s life path number is 6. It's a very interesting concept that is now being discussed by academic economists and in various environments. Draghi was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005). He studied at the Massimiliano Massimo Institute and graduated from La Sapienza University under the supervision of Federico Caffèwith his thesis titled Integrazione economica e variazione dei tassi di cambio (English: Economic integration and variation o… His mother, Gilda Mancini was a pharmacist. Overall, with the Eurozone inflation dropping to a three-year low of 0.8% and well below the ECB’s 2% target, and GDP annual growth rate at just 1.2% and falling, Mario Draghi will depart at a time when the economy is slowing down. Mario Draghi … Draghi was a full professor at the Cesare Alfieri Faculty of Political Science of the University of Florence from 1981 until 1994[5] and a fellow of the Institute of Politics at the John F. Kennedy School of Government, Harvard University (2001). At that time, policymakers believed that there was a stable trade-off between unemployment and inflation, whereby monetary policy could achieve permanently higher employment at the cost of slightly higher inflation. [15], Draghi was frequently mentioned as a potential successor to Jean-Claude Trichet, whose term as President of the European Central Bank ended in October 2011. Before that, he served as the Chairman of the Financial Stability Board from 2009 to 2011 and Governor of the Bank of Italy from 2005 to 2011. Goldman Sachs conquers Europe", "Goldman Sachs - Press Releases - Professor Mario Draghi Joins Goldman Sachs", "Draghi Says He Knew Nothing About Goldman-Greece Deal", "German paper says Draghi's ECB chances diminishing", "Weber's Withdrawal Throws Open ECB Race as European Debt Crisis Persists", "Draghi can lead the eurozone out of danger", "Italian Gains Support in Central Bank Race", "Draghi Said to Be Seen by Sarkozy as Trichet's Successor", "Mario Draghi, bien parti pour prendre la présidence de la BCE", "Mario Draghi appointed as head of European Central Bank", "Draghi appointed ECB chief (intro-only without subscription)", "EU appoints Draghi to ECB, Bini Smaghi to leave", "EuroparlTV video: Interview: 'Mario Draghi didn't convince me' – Pascal Canfin, MEP", "Hearing of Mario Draghi nominated to take over the European Central Bank 14-06-2011", "Unlike Bernanke, Draghi doesn't aim to be hero", "What central banks provide, oil markets take away", "Here's how things look a year after Mario Draghi pledged 'whatever it takes' to save the euro (blog)", "MARIO DRAGHI: Zero hedge readers don't understand the Euro crisis", "Eurozone's Future Remains at Risk, Mario Draghi Warns", "Introductory statement to the press conference (with Q&A)", Ombudsmann assesses Draghi's membership in lobby organizations, Head of ECB criticised for his membership in the G30, "Monte dei Paschi: Affäre um älteste Bank der Welt erreicht Draghi", "Europa droht ein Währungskrieg (Europe at the verge of currency wars)", "Giacomo Draghi Said to Exit Morgan Stanley for Hedge Fund", "Il figlio di Mario Draghi lascia Morgan Stanley per un fondo hedge", "Le onorificenze della Repubblica Italiana", Draghi, Prof. Mario, "Cavaliere di Gran Croce ...", "Página Oficial da Presidência da República Portuguesa", "Laurea honoris causa al prof. Mario Draghi", "Celebrating new academic year 2018-2019", "Mario Draghi to be awarded Law Degree honoris causa from the University of Bologna - University of Bologna", http://press.vatican.va/content/salastampa/en/bollettino/pubblico/2020/07/10/200710a.html, "How ECB Chief Outflanked German Foe in Fight for Euro", EUROPE'S DEFLATION: IMAGINATIVE RISK AND FICTIONAL POLICIES, Mario Draghi - The World's 100 Most Influential People: 2012 - TIME, https://en.wikipedia.org/w/index.php?title=Mario_Draghi&oldid=990434259, MIT School of Humanities, Arts, and Social Sciences alumni, Trustees of the Institute for Advanced Study, Grand Crosses 1st class of the Order of Merit of the Federal Republic of Germany, Articles with short description added by PearBOT 5, Short description is different from Wikidata, Wikipedia articles with SUDOC identifiers, Wikipedia articles with WORLDCATID identifiers, Creative Commons Attribution-ShareAlike License, 2009 honorary distinction in Statistics (, 2010 honorary Master in Business administration (Vicenza, CUOA Foundation), 2013 honorary degree in Political Science (, This page was last edited on 24 November 2020, at 13:20. Speech by Mr Mario Draghi, President of the European Central Bank, on the award of Laurea honoris causa in law from Università degli Studi di Bologna, Bologna, 22 February 2019. As president of the European Central Bank (ECB), Mario Draghi has presided over an era of disintegrating faith in EU, notable in the 2016 Brexit vote. Draghi's term runs from 1 November 2011 to 31 October 2019. [30][31][32], In December 2011, Draghi oversaw a €489 billion ($640 b. Mario is the first of three children: Andreina, art historian, and Marcello, entrepreneur. Mario Draghi’s term as president of the European Central Bank ends in October. From 1984 to 1990 he was the Italian Executive Director at the World Bank. He was born in the Year of the Pig. 7. But it is not fair to blame Draghi or the ECB for the slowdown. As Europe’s oldest university, it has been at the heart of … These actions were necessary and bold — and met with harsh criticism of me and Mr Draghi. View Mario Draghi’s professional profile on Relationship Science, the database of decision makers. Then he earned a PhD in economics from the Massachusetts Institute of Technology in 1976 with his thesis titled Essays on economic theory and applications, under the supervision of Franco Modigliani and Robert Solow.[4]. It has been a tumultuous tenure; among other things, he very clearly saved the euro from collapse in … In 1991, at the initiative of the then Minister Guido Carli, he became general director of the Italian Treasury, and held this office until 2001. • As winners, invited to the ECB in Frankfurt to meet top ECB officials including Mario Draghi Education Università Bocconi Università Bocconi Bachelor of Science - BS International Economics and Finance GPA: 29/30. "Within the limits of our mandate, the ECB is prepared to do anything to save the euro. By signing up for this email, you are agreeing to news, offers, and information from Encyclopaedia Britannica. [22] Contrary to previous reports about France's position, on 25 April it was reported that President Nicolas Sarkozy saw Draghi as a full-fledged and an adequate candidate for the job. [9][29] Pascal Canfin (MEP) asserted Draghi was involved in swaps for European governments, particularly in Greece, trying to disguise their countries' economic status. 1970 - Degree in economics, Universita degli Studi, Rome . Mario Draghi OMRI GColIH BVO (Italian pronunciation: [ˈmaːrjo ˈdraːɡi]; born 3 September 1947) is an Italian economist who served as President of the European Central Bank between 2011 and 2019. Mario Draghi was meant to save the eurozone and in particular the troubled Italian economy. On October 9, the Hutchins Center on Fiscal and Monetary Policy at Brookings hosted a presentation by the ECB President Mario Draghi on the latest developments in Europe and in global central banking. [34], Late in February, 2012, a second, somewhat larger round of ECB loans to European banks was initiated under Draghi, called long term refinancing operation (LTRO). [27], Concerns were also expressed during the candidacy about Draghi's past employment at Goldman Sachs. On 5 August 2011 he wrote, together with the immediate past governor of the ECB, Jean Claude Trichet, a letter to the Italian government to push for a series of economic measures that would soon be implemented in Italy. https://www.britannica.com/biography/Mario-Draghi. The program was around the same size as the US Troubled Asset Relief Program (2008) though still much smaller than the overall US response including the Federal Reserve's asset purchases and other actions of that time. On 10 March 2016, Draghi provoked a wave of talks on the concept of "helicopter money" after declaring at a press conference that he thinks the concept is 'very interesting': We haven't really thought or talked about helicopter money. Mario Draghi is an Italian economist, manager and banker who succeeded Jean-Claude Trichet as the President of the European Central Bank on 1 November 2011. The ECB was established in 1998, and since 2011 it has been headed by Mario Draghi. Mario’s next birthday is in . This is a two-minute extract of … [14] It aims to promote international financial stability, improve the functioning of markets and reduce systemic risk through information exchange and international cooperation between supervisors. ), three-year loan program from the ECB to European banks. In 2014, Draghi was listed as the 8th most powerful person in the world by Forbes. Draghi previously worked at Goldman Sachs from 2002 until 2005. Education. "[36] This statement led to a steady decline in bond yields (borrowing costs) for eurozone countries, in particular Spain, Italy and France. [21] A few days later the German newspaper Bild endorsed Draghi by defining him the "most German of all remaining candidates". Mario Draghi: 'Reducing youth unemployment is a priority for everyone' This article is more than 4 years old Read the full transcript of our interview with the ECB president in … His father Carlo joined Banca d'Italia in 1922, later IRI and in the end Banca Nazionale del Lavoro. "[11], Draghi is a trustee at the Institute for Advanced Study in Princeton, New Jersey and also at the Brookings Institution, in Washington, D.C.[7], In his capacity as Bank of Italy governor, he was a member of the Governing and General Councils of the European Central Bank and a member of the Board of Directors of the Bank for International Settlements. He noted that school closures had interrupted learning and called for schools to reopen and stay open.