Trying to make sense of the global economy these days is worse than picking the winner in an end-of-card novice chase at Leopardstown. As the US cut rates again this week, one Irish economist suggested the US downturn would be worse than expected precisely as US investors were betting that the worst may have passed for the US economy.

Still, for all the confusion, at least the US Federal Reserve knows what course it wants to follow and has been consistent. Figures for EU which harmonised inflation this week undermined even further the arguments of Wim Duisenberg and his European Central Bank (ECB) colleagues in cutting interest rates.

The EU consumer price figures, based on national figures available last week when the ECB made its rate cut, show a sharp increase. Now what, Mr Duisenberg . . .

dcoyle@irish-times.ie