The ECB is not even at the ZLB

Eurozone interest rates have been left unchanged at the record low of 1 per cent by the European Central Bank as the 17-country region struggles to return to economic growth.

To everyone calling for fiscal stimulus in the Eurozone, purlease, start directing your ire at the European Central Bank.

Arguably, when the central bank has cut rates to zero it become much less effective at helping depressed economies. But the ECB has not hit this Zero Lower Bound. It can cut rates, lots!

By not doing so they are screwing everyone and everything in the world. Causing preventable deaths, preventable defaults, preventable capacity underutilisation.

It is no exaggeration to say that these people can be described as criminally negligible. Although they are successfully keeping inflation close to if not below 2% they are also successfully destroying the Euro, if a central bank’s staff kills a currency I’d say that’s a crime.

In 30 years time they will look from Trichet and Draghi to Greece and Italy and think “how could that happen” in the same way we look at Weimar children playing with wheelbarrows of worthless currency. It is a monetary screw up of similar, if opposite, proportions.