Jeremy Warner: And on it goes ... the death of the eurozone by a thousand cuts.
THERE is an unwritten rule among the world’s elite club of central bankers that they don’t criticise each other. Whatever happens, these "Lords of Finance" stick together.
It shouldn’t, therefore, have been a surprise to see Sir Mervyn King, the Governor of the Bank of England, come leaping to the defence of the European Central Bank (ECB) during his quarterly inflation report press conference yesterday, over its refusal to act as “lender of last resort” to troubled eurozone nations by buying up their bonds without limit.
What was surprising was the passion with which he argued the case; Sir Mervyn managed to articulate it much more forcibly than Mario Draghi, president of the ECB, or Draghi’s predecessor, Jean-Claude Trichet, or indeed the Bundesbank hierarchy that instructs this point of view.