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The parameters for such interventions are evidently the subject of considerable controversy, particularly given the need to comply with the EU Treaty and the sensitivities towards any formal program of purchases expressed by central banks from the surplus countries (Germany and possibly Benelux, Finland and Austria), Barclays said.
FORBES: Barclays Expects 25bp Rate Cut In Europe
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The export-led growth models of other surplus economies such as Germany and Japan are also both going to have to give way to greater domestic demand.
WSJ: We Need Greater Global Governance
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With the Eurozone expected to shrink a further 0.1% this year, after contracting 0.6% in 2012, European policymakers will have to work to achieve more symmetrical adjustment shared between core external surplus members, namely Germany, and peripheral deficit countries, Kraemer argues.
FORBES: Spain, Italy, And Even Greece Sell Bonds, But Europe's Crisis Is Far From Over