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Well, yes. Pretending that the central bank could reach its inflation target plays into that narrative.

On the other hand this diary undermines the standing of ECB through pointing out their failure to reach their target, and undermines inflation fears.

My main problem with ECB is not its interest rates politics (even though the whole NAIRU thing is one big problem), but how it through blackmail has seized power in the Troika countries and is running them into the ground.

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by A swedish kind of death on Fri Dec 5th, 2014 at 04:07:41 AM EST
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My main problem with ECB is not its interest rates politics (even though the whole NAIRU thing is one big problem), but how it through blackmail has seized power in the Troika countries and is running them into the ground.
It's even worse, the European Commission (not the ECB) uses NAWRU
(non-accelerating wage rate of unemployment)
as their policy target. But you know this already:
the unemployment is there intentionally to prevent those employed daring to ask for a raise
. And the political leadership is provided by the Eurogroup and European Council (not the ECB). Though it is unclear to what extent the ECB needed to lie to the Eurogroup back in 2010 about the legality of bond purchases.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Fri Dec 5th, 2014 at 05:02:15 AM EST
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