Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Problem : most of Europe is enduring cost inflation, while wages do not follow; only Germany meets the standard criteria for increased interest rates.

To you that is a problem. The ECB's stated policy goal is to prevent at all costs that wages follow costs.

They call this "second round effects".

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Apr 7th, 2011 at 04:51:09 PM EST
They call this "second round effects".

The results of which are similar to the effects the drunken "Ivan Muzhakh" produced on his foundering donkey by beating it in the memorable scene from Brothers Karamazov.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Apr 8th, 2011 at 01:05:51 AM EST
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