The European Central Bank Is in a Peculiar Situation

The negative inflation of minus 0.2 percent in the eurozone in February was a blow for the European Central Bank (ECB). Another development is also clear – the economy is not picking up, as a range of institutions, including the European Central Bank, predicted a few months ago. I continue to hold the view from last year that European growth will disappoint in 2016, and one of the disappointments will be Germany.