POL 423 Journal 5

POL 423 Journal 5 - Germany and France are experiencing While at this time it is hard to say what exactly the ECB is going to do one thing is

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Financial Times Hawkish ECB treads a fine line on growth and rising costs Friday, January 28, 2011 Journal 5 The European Central Bank came out with a statement saying it had plans on raising interest rates in order to combat inflation. Some economists do not know if this is a scare tactic, trying to gain more confidence in the ECB or an actual plan. The ECB has never even talked about raising interest rates until the four quarter of the year; this fact leads many to think this may just be a political stunt. Some others however, are a little worried that this may actually be a plan the ECB will enact which could stunt the rather large economic growths countries like
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Unformatted text preview: Germany and France are experiencing. While at this time it is hard to say what exactly the ECB is going to do, one thing is certain, the ECB likes using tactics that are called “credible alertness” in hopes of getting responses from threats without actually coming through with those threats. This article leads me to question whether the ECB is in line with the rest of the European Union. If they truly do raise the interest rates it will greatly jeopardize the growth that the member states are experiencing, which leads me to believe the ECB is looking out solely for its own interests rather than the interests of the member states....
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This note was uploaded on 03/14/2012 for the course POL 423 taught by Professor Dr.mason during the Spring '11 term at Miami University.

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