The Challenge for the European Central Bank

The European Central Bank may disappoint once again at Thursday’s meeting. Given deteriorating conditions in the euro area, the failure to embark on a quantitative easing program, as other major central banks have already done, becomes tough to defend. It has been five years since the epicenter of the global financial crisis moved from the United States across the Atlantic. Since then, while the U.S. economy has enjoyed recovery with steady growth, the euro area economy has languished, going through a double dip slump and currently at risk of falling back to an unprecedented triple dip recession.