The above chart is one of many “reality check” charts in a new research note from economist Mike Darda of MKM Partners. This one shows a stunning correlation between ECB tightening and further economic weakness in the eurozone back in 2011. Something for those on the center-right and elsewhere to think about as they bemoan the “easy” Bernanke Fed.
As Darda also points out, “the Fed has done enough to avoid deflation and double dip recession despite the most intense fiscal consolidation since the Korean War demobilization.”
That and no more, unfortunately.