Eurozone Inflation and Brent Oil Prices

Eurozone Inflation and Brent Oil Prices This interesting chart shows the direct effect of brent oil prices (YoY % change) on euro area inflation. Picture source: Jeroen Blokland

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates?

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates? Because they have a deflationary view of the euro area economy. Now, investors are losing so much money just by holding German bonds in real terms (adjusted for inflation). Today, the Germany 10-Year bond yield hits 0% again. Keep in mind that raising interest rates in…

ECB Balance Sheet vs. ECB Deposit Rate

ECB Balance Sheet vs. ECB Deposit Rate It could be difficult to push rates further into negative territory without affecting the profitability and financing capacity of Eurozone banks. Picture source: Jeroen Blokland

Most Important Variables When Forecasting Real GDP

Most Important Variables When Forecasting Real GDP Search trends are very different between China (manufacturing industry) and the USA/Eurozone (consumer), when forecasting real GDP. Picture source: Arbor Research & Trading LLC