In Addition, the former Bundesbank chief economist (he holds the same position at the ECB) says that tho ECB will not allow inflation. There has never been any real financial danger for any eurozone state, he tells a German newspaper.Stark rules of a Pan-eurozone government bond, saying it would not conform to rules on member states’ liabilities.The economy may shrink the next two quarters, he says, but less than previously expected. He sees recovery next year.
The lack of a unified European bond market has been a problem during this crisis as weaker credits like Ireland and Greece have been exposed, trapped in a currency union with a strong currency but no independent monetary policy.
EUR/USD is consolidating in the 1.3610 area after a dip into the 1.3560s during the New York morning.
