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Ambrose: “Eurozone recovery wilts as sugar rush fades, deflation lurks”

The Telegraph’s Ambrose Evans-Pritchard has a good article on the risk of renewed troubles for the euro zone. See here.

Ambrose qoutes me:

“The recovery is not gaining any traction. I am really quite worried about another spasm of the debt crisis over the summer,” said Lars Christensen from Markets and Money Advisory.

“Markets are beginning to lose faith that the European Central Bank can deliver stimulus, and we are seeing the return of problems in public finances in Portugal, Spain, and Italy. That is becoming a key story,” he said.

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6 Comments

  1. I think that a big part of the problem in Europe is that the banking system is broken and is unable to transmit monetary stimulus:
    https://research.stlouisfed.org/fred2/graph/?graph_id=306464

    Reply
  2. Maybe I am off topic but Mr. Lars can you tell me what is causing the negative interest rates? Is it CB or market uncertainty?
    Thnx a lot.
    Ps,
    great blog and greetings from Croatia!

    Reply
  3. James Alexander

     /  May 11, 2016

    what’s happening to you Lars? surely you are not endorsing this pseudo-Austrian “economics” claptrap that thinks monetary easing is some sort of drug?

    Reply
  4. James Alexander

     /  May 11, 2016

    Reply

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