ECB and Inflation

[Zanza]

I've seen talk of a Labour-Tory Grand Coalition here. Trouble with it is I can't see how it wouldn't destroy both parties.

Would it be similar in Spain?

It worked well in the Weimar Republic! Oh, wait... 

[Sheilbh]

This interview with Draghi is really fascinating:
http://www.ecb.europa.eu/press/inter/date/2015/html/sp150102_1.en.html

[The Minsky Moment]

What some people seemed to have forgotten that if Greece leaves the Euro, is that it will actually make the Euro stronger relative to other countries.

Greece is so small this effect is not significant.  But more significant is the cascade effect you mentioned - once the principle of exit is made a reality, it makes it more likely to manifest as an outcome for others.  And I think the impact of that is to push the Euro down because it created uncertainty about its global viability - in particular I don't think the institution would survive a broader "Southern Exit"

[The Minsky Moment]

This interview with Draghi is really fascinating:
http://www.ecb.europa.eu/press/inter/date/2015/html/sp150102_1.en.html

It's fascinating (in a horror show way) to the extent the Handelsblatt reporter reflects mainstream thought in Germany.  How can Germans of all people be so blasé about deflation - don't they teach the consequences of Breuning's policy in the schools?

Draghi says a  lot I'd take issue with, but I hesitate to be too critical because it reads like someone trying to talk down a crazy person, like Bernanke fielding questions from Paul pere et fils

[Ed Anger]

I'm now losing value on my Normandy holdings. Plz fix Euro.

FIX NOW.

9000 dollars in lost value. 

[Monoriu]

I am all for higher interest rates and deflation 

[Jacob]

I am all for higher interest rates and deflation 

Alas, your ability to influence either is limited to posting silly smilie faces like

[Monoriu]

I am all for higher interest rates and deflation 

Alas, your ability to influence either is limited to posting silly smilie faces like

Well, maybe if I post enough simlies 

[Admiral Yi]

I am all for higher interest rates and deflation 

Higher interest rates would lower the value of your bond portfolio.

[Monoriu]

I am all for higher interest rates and deflation 

Higher interest rates would lower the value of your bond portfolio.

I don't care about the resale value of my bonds because I always hold until maturity. 

[The Brain]

I am all for higher interest rates and deflation 

Higher interest rates would lower the value of your bond portfolio.

I don't care about the resale value of my bonds because I always hold until maturity.

If only Ed had done this.

[Ed Anger]

 

[The Minsky Moment]

I am all for higher interest rates and deflation 

Higher interest rates would lower the value of your bond portfolio.

I don't care about the resale value of my bonds because I always hold until maturity.

See - opportunity cost.

[MadImmortalMan]

The Swiss dropped their Euro exchange rate limit this morning and now CHF is moving a lot. What's the thinking there? Are they anticipating the ECB?

[Richard Hakluyt]

The Swiss dropped their Euro exchange rate limit this morning and now CHF is moving a lot. What's the thinking there? Are they anticipating the ECB?

That was very dramatic,  at one stage the euro was down 35% against the swiss franc.