Thursday, April 23, 2015

CHF situation via Bloomberg


High on metaphor short on substance imo.

This new policy of broader application of a negative policy rate will cause even further fiscal drag within the domestic economy and eventually will force exporters to lower their real terms of trade in an effort to boost lagging sales in their export markets still suffering under austerity.


And they can always re-introduce a peg to the EUR wherever they want it.

2 comments:

mike norman said...

WTF is this "running out of ammo" ridiculousness???

Matt Franko said...

Then in the article we are treated to: "and cash is still pouring across the border."

??????

Its pouring across Mike!!!! POURING!!!!!!

;)