MarketLine Blog

Posts tagged to Eurozone

Pound depreciation against euro: A short-term undervaluation trend


The ongoing depreciation of the pound against the euro has provoked many analysts to bet on the parity of these two currencies by the end of the year. However, even top financial firms that still advise investors to ride the tide against the pound, admit that they do so based on the prevailing uncertainty bias over Brexit. This bias is manifested through the contradictory perceptions of investors over the performance of the UK economy. Particularly, the rising inflation in the UK over the last six months has led to the… Read more

Greek debt crisis: Why Grexit is not an option


It is actually proven that undoing a fatal mistake of relying on an overvalued currency does not correct matters. The no alternatives case for the Greek economy on staying in the single currency union is easy to realize after having a close look at its macroeconomic figures that reflect something of an economic collapse. In fact, the heavy reliance of the Greek economy on services and at the same time its lack of a national productive base  rule out the possibility of achieving growth through the adoption of a devalued… Read more

Negative Interest rates: Desperate times, desperate measures


Central banks across the developed world have taken to Negative Interest Rate Policies (NIRP) in a radical attempt to stimulate demand- the idea being that those sitting on assets will be penalized in an attempt to either lend the capital or spend it. The UK’s Monetary Policy Committee (MPC) has not ruled out the idea, but Japan, the European Central Bank, Denmark, Sweden and Switzerland have enacted NIRP already for a variety of reasons; Japan and the ECB in last ditch efforts to stimulate demand, Denmark, Sweden and Switzerland in… Read more