Brendan Keenan: ECB wields a big stick but cannot save euro on its own
Published 07/09/2012 | 17:00
SPEAK softly and carry a big stick, was President Theodore Roosevelt's advice for international politics.
President Mario Draghi of the European Central Bank has been talking increasingly strongly, but there have been doubts about the size of the stick.
Yesterday, Mr Draghi showed more of the weapon to a waiting world. In theory the ECB, like any central bank, can wield a very big stick indeed. It can create unlimited amounts of money but, used carelessly, that can do damage all over the place.