I really think that Mr Trichet should have some media management course. Every time he speaks to the media, he makes the euro tumble. On the contrary, Mr. Bernanke (although he makes the dow and s&p slump frequently) says the right things in the right time . European Union is facing growing inflationary pressures but I would prefer to pay the price of inflation in order to have real GDP growth.
If the European Union raises interest rates aggressively that could impose a economic slowdown in the zone. The picture is quite complicated, I wouldn’t want to be Monsieur Trichet because you have the big boys (Germany and France) growing at steady figures and the other boys (PIGS ) that are literally broke . If they continue raising interest rates that could really worsen the PIGS situation.
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