In a market economy, losses are seen as an unmistakable signal of management mistakes or bad luck. Many business leaders then try to explain their losses with business adversity. But ECB President Christine Lagarde and her colleagues don’t even bother. They simply say that the central bank’s goal is not to make profits or offset losses – its goal is to ensure stable prices. Point. However, the European Central Bank (ECB) initially did not cut a happy figure in combating inflation. It had to raise key interest rates sharply to ease the price pressure. But high interest rates have the unpleasant side effect of making the costs of the loose monetary policy of the last decade visible.
Fight against inflation: central banks threaten losses – economy
