But what about rampaging inflation? Obviously an overheated economy is the Euro zone's biggest worry right now. Maybe the regime change at the European Central Bank really is a regime change: today the new ECB President, Mario Draghii, will make his first public speech.
The question most have is whether or not he will announce that the ECB will continue it's bond buying activity or even boost it. Before he left former ECB President Jean Trichet had indicated the ECB was keen to getting out of the bond buying program and would do as soon as the EFSF gets under way. Of course the EFSF and the overall Euro zone rescue plan now looks very much in doubt. There is a belief that Papandreou's move was a way of backing out of it-because of the unpopular austerity measures it demands.
It's too early to tell but might today's policy reversal-the ECB had actually raised rates in April and July-the only central bank to do this since the crisis had started-indicate a change in philosophy over at the ECB due to the new President? I don't know the answer to that but one can only hope.
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