The outlook for European growth is good. Fuelled by expansionary conditions and in particular a weak...
The outlook for European growth is good. Fuelled by expansionary conditions and in particular a weak currency, growth is accelerating and should comfortably exceed 3% this year and next. Although a lot of attention has been given to rising interest rates, the increases so far have not compensated for the effects of the euro's decline, conditions are therefore as stimulative as they have been for a decade. As a result money supply growth rates are accelerating, up to 6.5% in April versus a 4.5% target. This means that interest rates will rise. However, the broad aim of the ECB is neutrality....
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