- ECB is independent and must choose method for currency stability
She continues to push against the idea of a grand bargain, though I believe she will be dragged to accept it eventually. Even the ECB is showing greater willingness to play along, so long as the fiscal house gets tidied up.
- Update: Merkel says to protect ECB independence we must address the causes not just the symptoms of the debt crisis
The trouble I see with Merkel’s approach is that while it does attack the root causes of the debt problem it does not provide the immediate funding that may become necessary if Italy and Spain follow Greece, Ireland and Portugal down the rathole.