Economics and politics - comment and analysis

The Interest Rate and the ECB – The European Central Bank will disgrace itself again and Germany is to blame this time too

Central banks demonstrate their knowledge and their experience by having a clear judgement about economic developments and the causes of significant price increases, and they should also be able to communicate their judgement and its background effectively. A central bank that decides to raise interest rates and then has revise this decision a short time later because it was completely wrong in its assessment of the economy and/or prices loses credibility for a long time. …

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