So, what is the European Central Bank all about...
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In trying to fathom out why the ECB wont embarque on a bit of Quantitative Easing, ie, printing cash, like the US, UK and Switzerland did, I had a look at their remit: The primary objective of the ECB is to maintain price stability within the Eurozone, or in other words to keep inflation low. The Governing Council defined price stability as inflation (Harmonised Index of Consumer Prices) of below, but close to, 2% [^] Andf of course QE leads to inflation. Given it is based in Frankfurt, I wondered what sort of decision making process might be in place in a German institution (since it is well known the ECB caters to the state of the German ecconomy and not much else)Once a decision is made, it won't be changed[^] So basically, even if the Euro goes to hell in a hand cart, due to PIGS zone debt, fucked up exports, and banking liquuidity issues, the Germans wont undo a decision to keep inflation below 2%. I wonder if they have any intent to keep it above **-**2%....
============================== Nothing to say.
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In trying to fathom out why the ECB wont embarque on a bit of Quantitative Easing, ie, printing cash, like the US, UK and Switzerland did, I had a look at their remit: The primary objective of the ECB is to maintain price stability within the Eurozone, or in other words to keep inflation low. The Governing Council defined price stability as inflation (Harmonised Index of Consumer Prices) of below, but close to, 2% [^] Andf of course QE leads to inflation. Given it is based in Frankfurt, I wondered what sort of decision making process might be in place in a German institution (since it is well known the ECB caters to the state of the German ecconomy and not much else)Once a decision is made, it won't be changed[^] So basically, even if the Euro goes to hell in a hand cart, due to PIGS zone debt, fucked up exports, and banking liquuidity issues, the Germans wont undo a decision to keep inflation below 2%. I wonder if they have any intent to keep it above **-**2%....
============================== Nothing to say.