ECB Precision Stimulus Can’t Duck Doubt on How Economy Works

Mario Draghi’s quantitative easing may look like a precise business; the underlying economics are anything but.

Two recent observations by the European Central Bank on output and employment highlight how monetary policy is far from an exact science, underlining the challenge that the institution’s president and his colleagues will face in their two-day meeting starting Wednesday. In evaluating their targeted strategies to boost the euro area’s feeble inflation rate, they have to measure the economy -- and that’s the trouble.Click here to continue reading this article.