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…