Desmond Lachman writes about the dilemma facing the European Central Bank and its president, Christine Lagarde:

Lagarde now seems to be faced with a difficult policy dilemma. She can leave interest rates unchanged and continue bond buying to support the euro zone’s troubled economic periphery — but at the cost of inviting further euro weakness. Alternatively, she can start raising interest rates and end the ECB’s bond buying program to support the currency — but at the cost of inviting another round of the euro zone sovereign debt crisis.

Read the whole thing here.