The Unhappy ECB

Most central banks are finally beginning to tighten monetary policy. The European Central Bank stands out in not doing so, and not even making many preparations to do so. This is certainly not because there is no inflation in the Euro Area; on the contrary, it is higher than at any time since the introduction of the euro 23 years ago, and in Germany it is at its highest for nearly 40 years. What is going on, why is the ECB so reluctant?

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