Tag Archive: ECB

The Northern Euro introduction: A retrospective from the year 2030

2012-05-20

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2012-05-20

Map Neuro Seuro 2028
  A retrospective from the year 2030 on two decades of failed european integration policy and 10 years of successful disintegration policy The following essay shows that currency regimes come and go over the time. Nothing is stable with the time, especially the use of a currency. What has never happened in history is the use …

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Italy: About the Hypocrisy of Politicians and the Blindness of the English-Speaking Financial Papers

2012-05-19

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2012-05-19

Debt Servicing Costs Italy vs. GDP change
Just a little wrap-up of two tweets read in 5 minutes, to which I finally added a bit more out of my recent Tweets. One Tweet: The British finance minister Osborne has emphasized that the euro zone needs to protect its peripheral economies. “The whole of Europe needs to become more competitive and productive. That …

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Written in February 2012: Will the EUR/CHF never rise over 1.22 or 1.23 again?

Our analysis from February 2012 shows astonishing accurateness: It predicted that the euro would not rise against CHF and that the commodity currencies were overvalued and subject to correction. Basic foreign exchange theory, the SNB price stability mandate and strong fundamentals for Switzerland and bad ones for the peripheral countries of the euro zone speak for the thesis that the EUR/CHF exchange rate might never go over the level of around...

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The new European Save-Havens: Trade SEK/CHF and NOK/CHF

2012-01-10

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2012-01-10

eurchf eursek eurnok eurusd 2009-2011
After the announcement of the floor in the EUR/CHF pair, many predicted the Swedish and the Norwegian Krone to take the place of the Swiss Franc as European save-haven against the Euro turmoil (http://on.ft.com/pKSJ1V). Both countries possess a low level of debt, positive trade balance and very competitive economies.

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Jürgen Stark’s resignation and the ECB 2005 warning about labor cost divergence in the Euro-zone

2011-12-18

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2011-12-18

Labour costs EU 1997-2007
The Wirtschaftswoche reports about the real reasons of ECB Chief economist Jürgen Stark’s resignation. The reasons are rather political, namely a protest against European governments:

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