THE ECB WILL BUY BONDS WORTH €60BN PER MONTH AT LEAST FOR 18 MONTHS TO REVIVE EU ECONOMY

The ECB said it would buy government bonds from this March until the end of September 2016 despite opposition from Germany’s Bundesbank and concerns in Berlin that it could allow spendthrift countries to slacken economic reforms. Together with existing schemes to buy private debt and funnel hundreds of billions of euros in cheap loans to banks,…

Explanation of the Eurozone crisis

World leaders probably spend more time worrying about the eurozone crisis than anything else nowadays. But as eurozone governments struggle to agree the best way out of the crisis, are they missing what caused it?   The eurozone has agreed a new “fiscal compact” Eurozone parliaments are in the process of ratifying a tough set…

Eurozone deflation threat to UK

There is an argument that falling prices in the eurozone, deflation, are good news for them across the Channel but pretty awful for us here in Britain. How so? Well the big contributor to falling prices is the tumbling oil price, which saw the cost of energy fall 6.3% in December – and will generate…

The euro zone slides into deflation : the good and the bad

TODAY’S figures from Eurostat confirmed what the markets had expected following reports already out from Spain and Germany: consumer prices are now falling across the euro zone. Inflation turned negative in December, with prices down by 0.2% on their level in December 2013. This is the first time that the euro area has experienced deflation…