• The euro-zone economy as a whole may now be shrinking, after GDP fell in the fourth quarter (see article), and the fiscal compact imposed by Germany is geared towards ever more austerity.

    ECONOMIST: Europe and the euro

  • Cheaper access to dollars from the Fed (via the ECB) for euro-zone banks will give them greater incentive to roll over existing liabilities rather than merely shrinking their balance sheets at the current breakneck pace.

    WSJ: Central Banks' Action

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