Reuters blog archive
Euro zone policymakers like to talk. They often contradict each other at separate speaking engagements on the same day. But they have struck a chorus in recent weeks, asserting that deflation is not a threat.
Members of the ECB Governing Council have been particularly vocal, insisting they will not have to alter policy to counter falling prices.
Jan 9: Mario Draghi says the euro zone may "experience a prolonged period of low inflation" -- steering clear of even mentioning the word deflation.
Jan 21: ECB's Ewald Nowotny says "we neither see inflation nor do we see deflation in the euro zone".
As is now customary for retiring central bank chiefs, Bank of England Governor Mervyn King has received a warm - but not a standing - ovation from economists for his time in charge.
But if there’s one thing the last few years have shown, it’s that the legacy of prominent central bankers can sour quickly after retirement.
Price stability remains the only needle in the compass for the European Central Bank, even when it is buying government bonds, the 17-country bloc's central bank strived to argue on Sunday.
ECB President Jean-Claude Trichet said, in the statement announcing extension of its bond-buying programme, that the decision was made to keep inflation at an acceptable level.
When it decided the time was right to crack down on inflation, the European Central Bank did so without the man who is often regarded as its toughest inflation hawk: Bundesbank chief Axel Weber. The ECB took financial markets by surprise by announcing on Thursday it could raise rates as soon as April -- a decision its policymakers reached without Weber even in the room.
The German, who has appeared isolated at times over the last year because of his staunch commitment to price stability above all else, was absent without leave and did not attend the meeting.
from The Great Debate:
Remember when business and economic leaders droned on about "100-year storms," 2008's get-out-of-jail free card for people who missed the housing bubble?
This was the whole idea that there was no way that people could be held accountable for the crisis because the notion of there being a problem with continual double-digit house price growth and sky-high leverage was just so darned unlikely.
Weber normally avoids all comment on the tricky subject of choosing a successor to current ECB President Jean-Claude Trichet but with just over a year to go before the plum post comes up, could not resist making an ambit claim.
Jean-Claude Trichet, the head of the European Central Bank, was in a good mood on Thursday.
The 16-country bloc's central bank is starting to see light at the end of the tunnel after a long, hard slog through the financial crisis and the resulting Great Recession, and this gives the policymakers a chance for some R&R.
Give European Central Bank President Jean-Claude Trichet a vuvuzela.
Having previously confessed ignorance on all things soccer the ECB chief finally appears to have been bitten by the World Cup bug.
He did a Ronaldo-style double step-over when asked who he would cheer for in Sunday's final between Spain and the Netherlands but admitted he enjoyed Spain's slick defeat of Germany the previous evening.
"The last match was beautiful I have to say," Trichet enthused at the bank's news conference.
The comments were greeted with laughter by the clutch of international journalists in the audience. Realising that he may have sounded a little too happy about Germany's loss he quickly backpedalled.
"I don't have any judgment on the result of the match. I said that it was a beautiful match obviously. And the two teams were very beautiful on the field."
Germans called for Paul the now infamous "the oracle" octopus to be thrown on the BBQ after he predicted the defeat. Mr Trichet could be next in line. Then again there are economists who would argue that Spain needs ECB support at the moment.