From Mr Kenneth Broux.

Sir, With regard to Holger Schmieding’s piece “How to restore European resilience” (July 23), how can one call eurozone monetary policy “modestly restrictive”, when real interest rates are close to zero per cent and M3 money supply is still growing by more than 10 per cent in annual terms? Keeping interest rates too accommodative helps to explain why the European Central Bank will miss its inflation target until 2010.