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The agony of indecision for the ECB

The daily Jyllands-Posten takes a look at the ways the European Central Bank (ECB) can react to the dangers of inflation and looming recession. "While Europe's economy was successful the ECB was able to stick to its interest rate policy without provoking major criticism. But the threat of recession along with growing unemployment and other economic consequences has faced the ECB with a dilemma: which disease to tackle first - inflation or the recession? Many European politicians take it for granted that the recession is the most pressing problem. This is why the ECB should follow the example of the American Federal Reserve and lower interest rates in order to improve conditions for European families whose private consumption is vital for the well being of Europe's economy. ... If the ECB does indeed lower interest rates later this year, as some economists have predicted, it will only do so once it sees clear signs that inflation is slowing down."

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Más de la revista de prensa sobre el tema » Economía política, » Mercado de finanzas, » Europa

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