Daily Archives: June 3, 2014

By William K. Black

The European Central Bank’s (ECB) written policy is to maintain the eurozone inflation rate at just under two percent.  The ECB has consistently failed to achieve that goal.  Indeed, its failure has been growing steadily.  The ECB’s failure tells us something enormously important about what is wrong with the eurozone’s economy and the troika’s bleeding of that economy through austerity.  The ECB’s increasing inability to even come close to its inflation target demonstrates that demand remains woefully inadequate in the Eurozone – making austerity an insanely self-destructive policy. The Wall Street Journal (WSJ) reported on the ECB’s latest failure in an article entitled “German Inflation Rate Plummets as Manufacturing Slows.”

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