POL 423 Journal 10

POL 423 Journal 10 - Financial Times Time to get real on...

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Unformatted text preview: Financial Times Time to get real on Europe’s inflation target Monday, January 31, 2011 Journal 10 The inflation that the European Union is experiencing should be taken seriously, not as a fact that there is a problem with the economic programs of the union, but that Germany may be growing too much too fast. Germany’s inflation is increasing at a fairly high rate and that is increasing the inflation for the whole union. If Germany’s inflation keeps increasing that will likely bring up the inflation rate above what the ECB wants it to be at, which will have negative effects on the economies, but raising interest rates can also slow growth that the countries are currently experiencing. While at this time it is hard to say what exactly the ECB is going to do, one thing is certain, the ECB needs to make a decision before the German inflation gets to a point that can hurt the economic growth of states in the eurozone. 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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