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Tuesday, March 3, 2015

David Beckworth : The Origins of the Eurozone Monetary Policy Crisis...

Macro and Other Market Musings: The Origins of the Eurozone Monetary Policy Crisis...: I made the case in my last post that the Eurozone crisis was largely a monetary policy crisis. That is, had the ECB lowered interest rates...



All of this points to the Eurozone monetary crisis being the product of a poorly designed currency union. It is, in other words, far from being an optimal currency area. From this perspective, the monetary policy crisis in Europe can be thought as a structural crisis that is not going to go away anytime soon. 

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