Quote:
Originally Posted by Ricardo
Mr Trichet is responsible only for the inflation control.??
I don't think so... didn't you see socks falling already??
His job will be also RESCUE the economy...
Watch & see...
GreetZ
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Ricardo, I think what Big Mike is referring to is the mandate of the central banks. This is from the European Central Bank website (
http://www.ecb.int/ecb/orga/tasks/html/index.en.html):
Quote:
Objectives
"The primary objective of the ESCB shall be to maintain price stability".
And: "without prejudice to the objective of price stability, the ESCB shall support the general economic policies in the Community with a view to contributing to the achievement of the objectives of the Community as laid down in Article 2." (Treaty article 105.1)
The objectives of the Union (Article 2 of the Treaty on European Union) are a high level of employment and sustainable and non-inflationary growth.
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As you can see, price stability is their main goal, and it cannot be sacrificed to focus on economic growth. In practice, will we
always see this? Who knows, but it has been the case so far...
Until CPI falls back dramatically, don't expect Trichet to even consider cutting rates.
