I have been harping about the Fed's atrocious monetary policy for very long - so, how about the ECB? Are they any better? Most definitely, not. If anything, they are even further behind in normalizing monetary conditions for the Eurozone.
To begin with, the ECB expanded its balance sheet (QE = "printing money") by buying euro area government bonds just as much and just as fast as the Fed - see chart below.
- Several euro nations have still not truly recovered from the 2008 Debt Crisis. Italy, Greece - even France - carry enormous Debt/GDP burdens and will simply go belly up if their borrowing costs were to rise to "normal" levels.
- The pandemic wreaked havoc to the European economy, particularly the tourism sector that is so vital to the same countries as #1.
- The war in Ukraine sent energy an food prices soaring, crimping real household income available for discretionary spending, vital for the EU economy.