Lean Times

FRANKFURT, July 20, 2008 (AFP) - The European Central Bank is trying to convince people in the eurozone that taking a tough stand on inflation will get them through lean economic times, arguing that long-term gains warrant short-term pain. "There is a particular need to speak to citizens on inflation and monetary policy right now," Natixis economist Sylvain Broyer said after ECB president Jean-Claude Trichet laid out the bank's stance in an interview with four major eurozone newspapers. Public opinion is emerging as key ground to be won since the bank raised its main lending rate despite signs that economic activity was slowing sharply in the 15-nation eurozone. Politicians have urged the ECB to ease policies that determine credit conditions for around 320 million people, though they know its main goal is to keep inflation,... [read full story]