, Columnist
The End of Easy Money
Inflation pressures are starting to hurt Europe's smaller companies.
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A spat is developing at the European Central Bank about how -- and how soon -- the institution should signal its intention to scale back its monetary stimulus program. Data buried in the central bank's most recent survey of companies suggests a rebound in inflation may inflame the debate sooner rather than later.
Peter Praet, the bank's chief economist, said earlier this month that "after so many years of accommodation, you cannot change the stance very abruptly." His colleague Benoit Coeure, who runs market operations, warned of "larger market adjustments" if signaling a change of stance is delayed too long.