ECB insanity: The worst institution in the world keeps on getting worse.

The ECB's Madness

The ECB's Madness

Moneybox
A blog about business and economics.
June 6 2013 2:45 PM

The Ongoing Madness of the European Central Bank

Mario Draghi, president of the European Central Bank, and Bundestag President Norbert Lammert speak to the media at the Bundestag after Draghi spoke to German parliamentarians on Oct. 24, 2012, in Berlin.
Mario Draghi, president of the European Central Bank, and Bundestag President Norbert Lammert speak to the media at the Bundestag after Draghi spoke to German parliamentarians on Oct. 24, 2012, in Berlin.

Photo by Sean Gallup/Getty Images

One grows tired of writing this every few months, but this is totally nuts. If current policy was appropriate to the old forecast, then the new forecast must call for a different policy. Right? Or is the ECB's view that it's been running dangerously inflationary monetary policy for years and only now under the new depressed forecasts is it appropriate? That's just silly. But they keep doing this. Revising their forecasts downward, while not changing any policies. It's egregious. They start with inappropriate policy and then they get worse and worse.