'We need different tools to deal with inflation'

Last week the European Central Bank ended nearly a decade of ultra-loose monetary policy.

Tasked with keeping prices stable, the bank's governing council raised interest rates by 0.75 percent, the largest single increase since its founding in 1998.

But critics have warned higher interest rates will exacerbate a looming recession in Europe. Instead of managing prices by suppressing the entire economy, a less damaging way o...