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The European Central Bank prescribes pain
Market sentiment” is one of modernity’s great phrases. The markets sense that a European recession is looming: the euro exchange rate has fallen by 5% since July, interest rates on government bonds are falling; money is always quick to scare. Businesses are also beginning to sense that a downturn is coming: wage growth is slowing in the eurozone, despite the fact that several countries are experiencing record low unemployment. Such downturns — in the form of recession — have multiple causes; that’s a truism in economics: everything is multi-causal. Among the main causes, we could cite geopolitical factors: ... (full story)