Rather than persist with an approach that risks failure, European Central Bank President Draghi and German Finance Minister Schäuble — the continent’s two most senior economic policy makers — should engineer tighter eurozone monetary policy and simultaneously loosen fiscally. Reining back controversial plans for more ECB government bond asset purchases (quantitative easing) could be balanced by more pragmatic interpretation of euro bloc budgetary objectives, recognizing that many southern states are already struggling to meet fiscal goals.
