Europe May Be in the Calm Before the Storm

European Central Bank in frankfurt.Andrew Cullen writes in today’s Mises Daily: 

So why has the ECB president kept his powder dry, and is the European banking crisis contained or still perilously at risk?

Mr. Draghi diplomatically hedged at a press conference, claiming that the data available failed to show definitively a confirmed deflationary trend and that though officially measured price inflation at 0.8 percent was below the Bank’s mandated target 2 percent, there was no convincing evidence of a Japanese-style deflation in the Eurozone.

The bank president’s words are meant to buy time, while two related processes — one political, the other regulatory—play out.

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