May 7, 2011

The ECB Is Tightening Too Soon

Unfortunately the ECB has started to increase interest rates, these increasing interest rates are leading to a strengthening of the euro. The euro becoming stronger and stronger is preventing the resumption of economic growth.

"If there is not going to be economic growth their peripheral eurozone economies own fiscal problems - too much public debt, too much private debt - will never be resolved.

"A weaker euro would help them to grow out of their own recessions. Maybe the ECB is tightening to much, too fast, too soon. - in BBC