Inflation hawks (fg)

The financial and economics information platform eurointelligence today reports that Bundesbank president Weber still sees upside risks to inflation. In a statement, made at the Verein für Socialpolitik, Weber was quoted that price increases will occur on a wider scale in the next few months. This really sounds convincing to me when analyzing economic outcomes. In the euro area, as opposed to the US, economic variables still perform well and there are signs of decoupling between Europe and the neighbour across the atlantic. In addition, I think the ECB is well adviced not to meet finanical sector's need of cheap money. Scilicet, it was the financial sector trying to push returns high by applying CDOs with difficult risk exposures. Any attempt on part of the ECB to delay the neccessary adjustments of banks' balance sheets will worsen outcomes and create moral hazard for the next time when financial innovations paired with massiv liquidtiy will deluge markets.