Jean-Claude Trichet, the president of the European Central Bank. (Photo: AP)
The ECB's Jean-Claude Trichet was magnificent today.
Asked by a German journalist what he thought of growing calls by German economists for a return to the D-Mark, he showed his Gallic spirit.
"We have been called upon by the democracies of Europe to deliver price stability, and we have delivered price stability, impeccably.
"I wan't to hear congratulations for the institution. It has delivered better stability over 12 years than ever obtained in that country (Germany) over fifty years," he said, almost choking with emotion.
"We are in the worst crisis since World War Two and yet we have maintained confidence in the currency.
"We do our job. It is not an easy job."
Mr Trichet said leaders of France and Germany tried to pressure the bank into cutting rates in 2004, which would have been a grave error. "We didn't do it. Our independence is inflexible.
"The governments have not behaved properly. In 2004 and 2005 which were the large countries of the eurozone weakening the Stability Pact? France, Germany, and Italy.
"We expect all other authorities to live up to their own responsibilities."
Bravo, monsieur. The institution has been left to carry out the dirty work for the EU, and clean up the mess left by everybody else. (Frequently Germany, since German shifts of policy have triggered each of the most recent bouts of EMU debt drama)
I have my strong criticisms of the ECB, but Mr Trichet is right. The bank has a highly restrictive mandate.
It is obliged to target inflation (asymmetrically, downwards), but not growth.
Since I think that targeting inflation is a foolish policy – "the tyranny of the general price level", as Keynes put it – it is no surprise to me that this has led to big errors. Target something sensible. Nominal GDP for example.
But that is not the fault of the ECB as a body, and not the fault of Mr Trichet.
We will all miss the Old World courtesy of this devoted public servant.
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