Paul Kedrosky's Infectious Greed
Finance & The Money Culture
Check the bund move in lthe ast twenty-four hours. Another day, another 100-year event.
Maybe someone can fill me in, because I'm not an economist. With the German inflation rate at 2.5% — see http://www.tradingeconomics.com/germany/inflation… — they're basically enjoying a free lunch here? Not saying it's their fault, I'm only trying to understand the impact of these low bond rates on their public finances.
You are correct.
Thanks. This really explains in hard numbers why the Germans are not eager to introduce Eurobonds. It really gives a cynical spin on quotes such as: "The German government has said eurobonds "don't make sense" right now, given that individual member states conduct their own economic policies." (quoted from http://www.bbc.co.uk/news/business-11743952 ). The solution is right under their noses, but they have no financial incentive to move quickly on this matter, until the crisis starts hurting their exports of course.
Paul Kedrosky‘s Infectious Greed
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