Comments from the leader of the ECB
- We will look through short-term shifts in prices
- It will take awhile before the ECB must worry about inflation
- Favorable financing conditions are the ECB's compass
- We must continue with accommodative monetary policy
- We need fiscal support at least through year end
The eurozone is trapped. The structure of the euro means they can't do the kind of monetary financing that's going to lead to much better growth in the US and elsewhere. It will also keep inflation pinned below 2%. Ultimately, if inflation gets out of hand elsewhere that may prove to be a good thing but I'm skeptical.
