The European way with rates

The European Central Bank was supposed to be the bastion of hard money. But it has not turned out that way. With both inflation and the overnight interest rate in the eurozone at 2%, the real interest rate is now zero. Politicians and some economists want even lower rates, but the bank feels it has done enough. The ECB presides over looser monetary policy than the US or the UK. Central bankers do not generally aspire to be known for their monetary laxness. Jean-Claude Trichet, the president of ...