Mario Draghi is the Chief Banker of the European Union. He is President of the European Central Bank and it is his job to maintain financial unity and prosperity in all the countries of the Eurozone. Draghi is an influential banker and economist and has been ranked by Forbes magazine as the 9th most powerful person in the world (for 2013).
Draghi was born in Rome 0n September 3, 1947, he graduated from La Sapenzia University and later earned PhD in economics from the Massachusetts Institute of Technology where his advisors included renowned Nobel Prize winning economists such as Franco Modigliani and Robert Solow. After completing PhD, he taught at both the University of Florence and Harvard University. He served as the Italian Executive Director at the World Bank from 1984 to 1990 and also held the position of General Director of the Italian Treasury. After this, Draghi remained Vice Chairman and Managing Director of Goldman Sachs and was also Governor of the Bank of Italy from 2006-2011. Soon after Draghi was nominated as the Governor of the Bank of Italy and he was elected as Chairman of the Financial Stability Forum (now the Financial Stability Board), an institution that aims to provide better international financial stability, improve the efficiency of markets and streamline the exchange of information amongst the participant countries.
Mario Draghi succeeded Jean Claude Trichet as President of the European Central Bank in 2011. Before Trichet’s term as President was about to end, Draghi was mentioned as a potential successor to the post. After his main rival for the position Axel Weber said he was no longer seeking the job, Draghi was the natural choice. Draghi’s job now, as President of the ECB is to regulate currency and monetary policy in the European Union. The ECB also has the important and difficult task of maintaining price stability in the 17 countries it is responsible for. The diversity of these nations makes the task of the ECB more daunting and their collective GDP exceeds $17 trillion. As soon as he was inducted as President, Draghi sought to make changes. Firstly, he supervised a loan from the ECB to several European banks; the amount of this loan was in the excess of $640 billion. A major problem in the Eurozone when Draghi started his tenure was the debt crisis. To address this problem, he decided not to reduce the rate of interest on private sector loans and tried to keep inflation in check. In 2012 the ECB, under Draghi, again injected funds into the Eurozone by giving another round of loans to European banks.
Overall, Draghi has worked tirelessly to alleviate concerns in the Eurozone regarding the debt crisis. Lately Draghi has been supporting a weaker Euro, he believes that a weaker Euro currency exchange rate will help with factors such as net capital inflow and the trade surplus. Draghi has also been a notable proponent of lower interest rates in the Eurozone; this will help growth in the European economy but may add to fears of deflation that have been present for some time. Mario Draghi has had a successful career where he has been a banker, professor and policy maker. For his services he has received several awards and honors such as the Knight Grand Cross of the Order of Merit of the Italian Republic which he received in 2000.