Dead right Chopera. Germany has always sought a strong currency. When it was the DM they prided themselves on it. Weak economies need a weak currency to be competitive. Germany’s strong economy, they believe, has come about because of efficiency and cost containment, especially wage cost containment. They dislike inflation intensely and that is why they pushed the ECB into this hike. As you say their exports are not particularly price sensitive and they could take another half dozen hikes. Sadly it is the periperal economies that can’t.