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Economics

Ghosts of 2012 Haunt Europe as Rate Hikes Begin

Taming inflation without triggering another debt crisis is the European Central Bank’s mandate.

European Central Bank President Christine Lagarde.

European Central Bank President Christine Lagarde.

Photographer: Zheng Huansong/Xinhua/Zuma Press

In Europe, it’s déjà vu all over again.

It was almost exactly a year ago that Christine Lagarde promised that the European Central Bank had learned from the errors of past crises and wouldn’t derail the current economic recovery by withdrawing emergency support too early.