The ECB and the European Council do not share the same policy priorities


German Federal Minister of Finance Wolfgang Schauble (R) and European Central Bank President Mario Draghi (Front C) talk at the start of a group photo session of the G7 Finance Ministers and Central Bank Governors meeting at Akiu in Sendai, Miyai Prefecture, northern Japan, 20 May 2016.

This week will show who will blink first, Berlin or Frankfurt

European Central Bank and the European Council macroeconomic policies do not run in parallel. Policy directions stemming from Frankfurt -- the headquarters of the European Central Bank -- are expansionary. Policies stemming from Brussels, on the insistence of Germany are fiscally more conservative.
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