At least the #BOE is more willing to accommodate than the #Fed. It will nip inflation going forward, IMO, because it has #TBTF banks too. At least growth is better than the #Eurozone, which is why having one's own currency is important.
Fascinating article, Raul. I would just say that growth that is slow, ie., the new normal, is pretty much all we have left. The Fed cannot allow greater growth, because it cannot raise interest rates and destroy the value of sovereign bonds. As for the Eurozone, the TLTRO program, if expanded, could help the real economy. I am not a fan of the #Eurozone, but #Draghi may be a little smarter than the rest of the worlds' central bankers. Only time will tell.
I don't see how it is possible for the #Eurozone and #Euro to go away, but this article is definitely a cause for thought. The Euro is flawed, a currency without a nation. That was madness to start with. But now, the ECB is literally protecting the bonds of all the Eurozone nations which are now used as collateral in many deals and in the derivatives markets. That is the glue that holds the project together. If that all goes bad we would see the mother of all margin calls as bonds thought to be pristine, were really just periphery bonds that deserved far higher rates. All you know what will break loose if this project fails. JMO.
BOE: Economic Forecasting in a World 'Tipped Upside Down'
At least the #BOE is more willing to accommodate than the #Fed. It will nip inflation going forward, IMO, because it has #TBTF banks too. At least growth is better than the #Eurozone, which is why having one's own currency is important.
The problem is a single central bank, not a single currency
I think the #Eurozone has two choices, either boot out the weak nations or make sure households are in possession of base money: www.talkmarkets.com/.../hope-for-the-real-economy-pigou-effect-tltro-helicopter-money
Globalization Is Dead, But The Idea Is Not
Fascinating article, Raul. I would just say that growth that is slow, ie., the new normal, is pretty much all we have left. The Fed cannot allow greater growth, because it cannot raise interest rates and destroy the value of sovereign bonds. As for the Eurozone, the TLTRO program, if expanded, could help the real economy. I am not a fan of the #Eurozone, but #Draghi may be a little smarter than the rest of the worlds' central bankers. Only time will tell.
The Euro Is Not Long for This World
I don't see how it is possible for the #Eurozone and #Euro to go away, but this article is definitely a cause for thought. The Euro is flawed, a currency without a nation. That was madness to start with. But now, the ECB is literally protecting the bonds of all the Eurozone nations which are now used as collateral in many deals and in the derivatives markets. That is the glue that holds the project together. If that all goes bad we would see the mother of all margin calls as bonds thought to be pristine, were really just periphery bonds that deserved far higher rates. All you know what will break loose if this project fails. JMO.