What new theory? The ECB has failed to intervene in the proper direction, and when it has intervened, it has done so in less than helpful manner. While at the same time Trichet has been undermined by certain national central bankers and chief economists, and people in the EU institutions have been making damaging leaks to the press while proffering to aim for financial stability.

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman