Inflation and US Economy

The Fed has chosen to focus on core inflation (core inflation), which excludes food and energy, ignoring the historically high commodity prices. It kept interest rates low and fueled the subprime bubble that has "poisoned" the financial sector in all developed countries. In contrast, the ECB has chosen to focus on overall inflation, reflecting the influence of emerging markets on rising commodity prices. This resulted in a much more accommodative monetary policy for the Fed, which will be maintained during the decade 2000 - 2010, real interest rates negative to zero half the time, conduct unthinkable in Europe, where the rate interest of the ECB held steady over the decade in a range of 2% to 4.25% and is down below 1% since May 2009.

In short, Europe was characterized by a more responsible economic management and a long term vision that contrasts with the choice of U.S. policies rewarding in the short term but long term suicidal. In doing so, Euroland has been repeatedly sanctioned as less effective by a financial community hungry for "chips" to power the "casino", and anabolic steroids to boost the stock market. United States, this meant a policy of overstimulation leading to the forced expansion of an economy that was completely retract, the time to cleanse themselves and go on a diet. So these last twenty years, Europe has been seen and experienced as rigid and boring by market operators constantly claiming she is aligned with the U.S. monetary policy, "more growth-oriented," and that it manages to stimulate consumer debt, ideal dictated by the U.S. model. "Always behind," Europe is less than the U.S. in times of euphoria, facial expression does one, and falls into a recession more severe in times of crisis, even when these crises have their origin the United States.

And one pretends to ignore that Europe, with less cheating because its economy is suffering as long as she finds herself infected, its territory by U.S. banks toxic. Indeed, the same "solutions doping" that Goldman Sachs sold to Greece have been used in the early 2000s by various regional banks and public entities in Europe, including Italy, Portugal, in the German Länder, and Eastern Europe. But the national authorities and community were not ready to provide remedies as extreme as their American counterparts.