The Financial Times provides an excellent overview of what it calls the end the of the global post-crisis policy consensus. This is in the aftermath of the European Central Bank (ECB) interest rate rise from 1% to 1.25% that took place last week.
The ECB decision to raise rates last week was the first time since its founding that it has taken a lead over the Federal Reserve, the US equivalent.
The primary mandate of the ECB is to 'focus on combating inflation risks, this was the argument used by ECB. This is on the back of soaring commodity prices i.e. grain, wheat and oil to name but a few. Inflationary pressures from rising food prices and petrol prices have now forces the hand of the ECB.
To continue to read the after effects of this rate rise click on the above link from the FT