The NYT told readers today that the European Central Bank (ECB) might raise interest rates because it is concerned about a strong dollar. It also told readers that "European leaders are increasingly impatient about the weak dollar, which is hurting their economies because Europe depends more on exports than does the United States."
Not to be nitpicky, but these are contradictory arguments. If the ECB is worried about inflation, then it should be delighted about the fall in the dollar. This not only reduces the price of imports from the United States, but also the price of imports of goods from China and all the other countries that link their currency to the dollar. This does slow European economies, but presumably that is what the ECB wants, if it is concerned about inflation.
In short, the article is claiming that Europeans both want more growth and a higher dollar, which would imply more inflationary pressures, and also lower growth. Clearly different actors may hold different views, but the article should have made this point clearly.
There's too much at stake this November for us to quit. As we navigate another presidential election year, thoughtful independent journalism is more important than ever. We're committed to bringing you the latest news on what's really happening across the country this election season, shining a light on the stories corporate media overlooks and keeping the public informed about how power really works in America.
Quality reporting doesn't come for free, and we don't have corporate backers to rely on to fund our work. Everything we do is thanks to our incredible community of readers, who chip in a few dollars at a time to make what we do possible. This month, we're trying to raise $50,000 to help fuel our election coverage, and we've fallen behind on reaching our goal. Any amount you give today will bring us closer to making our reporting possible—and a generous donor has agreed to match all online donations, so your impact will be doubled.
