Another Central Banker on the Hot Seat

When it comes to tempering the strength of the euro, the European Central Bank (ECB) should show the decisiveness that it demonstrated when it injected liquidity into the money market in the early days of the credit crunch in August. The decision that Jean-Claude Trichet, the president of the centra...

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Bibliographic Details
Published in:Barron's 2007-11, Vol.87 (46), p.M6
Main Author: Walters, Sean
Format: Article
Language:English
Subjects:
American dollar
Central banks
Euro
Eurozone
Foreign exchange rates
Interest rates
Online Access:Get full text
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Summary:When it comes to tempering the strength of the euro, the European Central Bank (ECB) should show the decisiveness that it demonstrated when it injected liquidity into the money market in the early days of the credit crunch in August. The decision that Jean-Claude Trichet, the president of the central bank, must make is not straightforward. But he must make it soon. The euro hit a record high against the dollar of $1.47 in Europe Friday, having risen 15% in the past year. The ECB might not have to open its vaults to have an impact on the currency market. A robust statement that signals a clear intention to act if the euro continues to strengthen sharply should be enough to give traders something to think about.
ISSN:1077-8039