Why Doesn’t The European Central Bank Do More?

As the sovereign debt crisis in Europe reaches alarming proportions, the European Central Bank (ECB) is under increasing pressure to act decisively. In mid-July the International Monetary Fund (IMF) warned that the 17 countries that use the euro could suffer “a debilitating decline in prices,” and urged the ECB to buy large quantities of government bonds to stimulate the economy. Along with warning of impending deflation, the IMF has repeatedly criticized the ECB for its lack of leadership during the crisis, warning that the measures taken have done little to calm the financial markets or restore growth.  more..