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The European Central Bank Must Follow Its Mandate

The European Central Bank Must Follow Its Mandate
A euro symbol and the european union flag illuminate the south facade of the European Central Bank (ECB) headquarters in Frankfurt, Germany, on Dec. 30, 2021. Wolfgang Rattay/Reuters
Daniel Lacalle
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Commentary
The European Central Bank should be hugely concerned about two pieces of news. The euro is on the verge of parity with the U.S. dollar and has accumulated a drop of 17 percent since 2021, more than 35 percent since 2008. On the other hand, inflation in the eurozone reached 8.6 percent in June, 5 percent excluding the energy and food components.
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.”
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