EURO, much ado about nothing?

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4 thoughts on “EURO, much ado about nothing?

  1. Ugly pictures! I am not a top economist but I have to say that US is doing a lot better than Europe, as you can see in my picture of 2011, KK urging another “stimulus package” (i.e. QE3): 😀

  2. Fun fact: spreads started to widen after the ECB raised the key policy interest rate to 1.5%. This can be also seen in the pictures on bbc for Italy

    Looking back the decision seems to defy things you learn in macro 101.

    1. Trichet was trying to mask the fact that he punched big holes in the ECB’s policy by accepting any kind of asset as collateral. So, as a good magician he increased rates to distract us. I agree with you that in the future we might talk about this moment as the moment that started it all.

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