Socialism for the bankers, capitalism for the rest of us – so it goes

On 21 July, the European Central Bank decided to raise interest rates for the first time since 2011 and unveiled a new tool aimed at protecting eurozone states from rising borrowing costs. Responding to the decision, Bob Hancké argues the ECB’s response to inflation essentially boils down to a massive transfer of funds to banks, almost certainly without any positive effects for the population at large and especially for those who most feel the negative effects of inflation on essentials like energy and food.