The ECB is far from “leaning against the wind”

There is a fairly broad consensus (but not unanimity) among economists in favour of a monetary policy that “leans against the wind”. Such a monetary policy gradually becomes more restrictive in the second half of expansion periods in order to: Prevent overborrowing ; Prevent asset price bubbles; Give leeway back to monetary policy in the event of a slowdown in activity. Until recently, the Federal Reserve could be considered to have le a n ed against the wind. But the ECB has clearly gone in the opposite direction, which we believe is very dangerous.