Deflation risk could test Draghi’s resolve

Meeting students at the University of Amsterdam last April, European Central Bank president Mario Draghi extolled the virtues of courage, recalling a story his father had told him:

“In between the wars, he saw an inscription on a German monument, a German statue saying that ‘if you lose your money you’ve lost nothing, because with a good business you will take it back; if you lose honour, you’ve lost a lot, but with good heroic action you can get it back; but if you’ve lost courage, you’ve lost everything.’”

Draghi showed his steeliness at the height of the eurozone crisis, vowing to do “whatever it takes” to save the currency.