Portugal Flops As ECB Fights Inflation

No amount of German growth will ever prove sufficiently strong to offer support to the Portuguese nation. Yet the sharp recovery in the heartland of Europe has been accompanied by typical price pressures associated with this stage of a recovery. Such pressure is not to be tolerated according to the ECB’s manuscript and as a result the central banker today closed the door on its era of uncomfortably loose monetary policy. In turn another door is pushed open wider reminding governments around the region that underlying structural problems are not the worry of monetary policy.

http://blogs.forbes.com/greatspeculations/2011/04/07/portugal-flops-as-ecb-fights-inflation/