Europe's central bank should not lose too much sleep over the euro

EUROPE is getting back in the game, and the world economy is all the better for it. The European Central Bank shouldn't spend too much time worrying about whether its actions curb the euro.

After all, the currency's 12 per cent appreciation against the US dollar this year reflects mostly what's going right for the euro region: Its expansion is picking up, with Germany, France and Italy reporting relatively robust increases in gross domestic product. And the region's labour markets are continuing to heal.

Inflation, while short of the ECB's target of close to but below 2 per cent, is slowly gathering a bit of momentum; deflation no longer seems like an existential concern.