The austerity trap. That’s the price to pay for an asymmetric scheme that fails to impose any discipline on those, like Germany, equipped with comfortable margins of manoeuvre for increasing their domestic demand.
Mr Draghi, governor at the European Central Bank, should listen to his American colleague at the Federal Reserve. And follow suit by means of expnasionary monetary policies even if inflation reaches 4 percent.
Discretion advice: If you are an European businessman struggling to get credit, or a US home buyer looking for a reasonable interest rate mortgage, this may hurt your feelings: Canada’s banks are lending money.
Corporate bond markets are still buoyant, according to CaixaBank analysts. Many firms, taking advantage of this renewed appetite for risk, have intensified the rate they issue debt.
Lack of economic stamina, investment and job creation is meant to push weaker euro country members towards further reform and budget correction. Those in the euro core mind little that recession woes are becoming a real prospect.
There are as many ways to stop one more country to follow Greece’s steps as European politicians’ excuses not to act upon them. Economist Luis Arroyo names them one by one.
MADRID | Will European leaders ever jointly move forward? The more the global economy slows down and recession looms too over core euro zone countries, the farther Europe finds itself from agreeing in letting the central bank do its work.
Philipp Rösler, vice chancellor and federal minister of economics and technology of Germany, used Tuesday in London some of the toughest language in defence of further austerity for the euro zone.
MADRID | The European economy desperately seeks ways to boost its recovery. Could it be so simple as to get a weaker euro, after all? wonders economist JP Marín Arrese.
Why the German government believes it should force Spain into a national rescue like Greece, Ireland and Portugal did before is a puzzling question for Madrid. The markets are not quite sure, either.