These are not just theoretical considerations. While the effects of any tariffs on output and inflation may take time to materialise, falls in equity prices in response to the US announcement to impose a tariff on steel and aluminium, and prevailing uncertainty on the scope of any retaliatory measures, have already contributed to tighter financial conditions.
*  *  *  Ladies and Gentlemen, By the end of last month, the successful era of President Willem Duisenberg at the helm of the European Central Bank came to an end. At the beginning of this month, Mr. Jean-Claude Trichet became second President of the European Central Bank.