Today’s chart porn is off of the most interesting article I read in today’s NYTimes: In Europe, Central Banking Is Different.
Note that Central Banks in Europe left rates unchanged today.
The full article describes how the ECB focuses on reducing inflation. However, there is a laundry list of factors the ECB pretty much ignores:
-Eliminating the normal business cycle;
-Preventing a recession regardless of costs;
-Allowing the currency to be debased.
Further, the ECB doesn’t seem to care where their equity markets are.
Two Different Approaches to Central Banking
The entire article is fascinating . . .
In Europe, Central Banking Is Different
NYT, March 6, 2008