August 31, 2008
Internationally, there was quite a lot of controversy about the ECB's hike in July. The Munich ifo institute hence asked a handful of German experts in their latest ifo-Schnelldienst for their assessment, among others me. I was happy to contribute.
Last week, the issue was published and I was a little surprised to read that I was the only one really criticising the step. Jörg Krämer from the Commerzbank, Ulrich Kater from the Dekabank and Werner Becker from the Deutsche Bank – while not all enthusiastic about the interest rate hike – were at least to a certain extent justifying the rate increase. I, in contrast, strongly criticised this step, as I had done earlier on Eurozone Watch (here and here).