ECB prudence

Responding to the recent stock market crisis, the president of the European Central Bank Jean-Claude Trichet brought up the possibility of not raising the prime rates in September, contrary to what had been expected. "The president of the ECB did well to present himself as prudent on the subject of the future orientation of the Eurozone's monetary policy. Especially because it's the best method of correcting poor communication, a condition with which the institution has been suffering for some time. ... It is reassuring that Trichet didn't succumb to the temptation to impose obstinance as the institution's principal argument, which would only diminish its credibility in the eyes of the market and the taxpayer, not so much in its capacity to intimidate, but rather in its contribution to the well being of the economies that find themselves in its jurisdiction."

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