The ECB accused of impotence in the face of the inflationary surge

For the European Central Bank (ECB), medium-term inflation should be around 2%, an indicator of a healthy economy.

For twenty years, this objective has very rarely been achieved.

Conversely, it is even disinflation that has sometimes prevailed, with price declines for several months in 2015, 2016 and again in 2020. Partly in an attempt to revive this inflation which had almost disappeared, the ECB injected 4700 billion euros in the economy for seven years via its asset purchase programs.

Now, last December, the average price increase in the euro zone jumped to 5%, a record for twenty-five years.

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The phenomenon is global (with a few exceptions, including Switzerland and Japan), fueled by soaring energy prices and industrial bottlenecks emerging from the pandemic crisis.

In response, most central banks are raising their interest rates in an attempt to curb the runaway.

All, except the ECB, which maintains its…

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