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Opinion

The ECB Cannot Fix the Euro Area Stagnation

The European Central Bank (ECB) decided to cut rates by 25 basis points the same day it elevated its own inflation estimates for 2024 and 2025.
The ECB Cannot Fix the Euro Area Stagnation
A woman walks past the European Central Bank (ECB) headquarters in Frankfurt, Germany, on Jan. 28, 2021. Kai Pfaffenbach/Reuters
Daniel Lacalle
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Commentary

The European Central Bank (ECB) decided to cut rates by 25 basis points the same day it elevated its own inflation estimates for 2024 and 2025. You simply cannot make this up.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”