Opinion: China’s ‘Draghi Moment’ Saved Its Stocks, but Can It Work Next Time?

The so-called “Draghi moment” is in a sense another name for the “announcement effect” that John Hicks, a winner of the 1972 Nobel Prize in Economic Sciences, talked about. The announcement effect refers to a situation where a policy announcement itself is enough to change people’s minds and cause an immediate shift in expectations, even though no concrete measures are in place, because people believe the policy will make a difference.