Where is the European Central Bank? The attention of financial markets seems to be riveted on the US Federal Reserve, which has by now cut interest rates by 300 basis points and is widely expected to cut by more soon. By contrast, the ECB has not moved rates at all since the outbreak of the crisis in August last year and speculation about whether it will cut any time soon has in effect ceased.

Moreover, the Fed has announced a series of innovations in the way it implements monetary policy. Again, the ECB has been much less active, adjusting its armoury of monetary policy instruments only marginally over the past few months.