The ECB is doing the right thing: raising interest rates. The change in the central bank's policy course that took place in December 2005 was clearly necessary. In fact, according to all sensible measures, the ECB's policy stance has been too expansionary. But it is to be feared that the damage has been done, with the consequences to be felt sooner or later. The ECB cut rates from 2.75% in January 2003 to 2% by that June, bringing real short-term rates to zero. It comes as little surprise that