Trump’s Trade War Is Uniting ECB Hawks and Doves
German monetary hawks finally have something bigger than inflation to worry about.
They have more to agree about now.
Photographer: Andrew Harrer/Bloomberg
Europe's central bankers suddenly appear more unified than at any time since the 2008 financial crisis. That's good for euro-zone stability and growth; and, ironically, Europe can thank U.S. President Donald Trump for it.
Since the financial crisis, the European Central Bank's governing council has essentially been divided into two feuding camps: The German representatives, with their aversion to inflation, and the Mediterranean members who want to keep central bank asset purchases and easy money flowing. Inflation fears are so ingrained in German thinking that quantitative easing, and the decline in the euro it provoked, has often seemed a bitter pill for savings-focused Germans, and especially for the ultra-conservative Bundesbank.