Inflation in the euro zone

Michael Moravec notes that the current high rate of inflation is tarnishing the euro's image as a guarantee for stable prices, "Particularly when you compare it with the British pound, the Swiss franc, or the Swedish or Norwegian crown. While the euro zone registered 3.6 percent inflation for March over a year ago, the British and Swiss got away lightly with a comparatively low 2.5 percent. According to economists, there is no simple explanation; several factors have contributed to this situation. But one major factor is that countries without the euro are able to adjust their financial policies to meet the needs of their economies more accurately. The British have effectively used higher interest rates to combat inflation. The European Central Bank, on the other hand, must take 15 countries into account when defining its financial policy. ... The countries of the euro zone are currently paying the price of having a single currency, and it's higher than expected because almost all of them have either postponed or rejected the necessary structural and financial reforms."

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