Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
With today's rise of the repo rate from 1% to 1.25%, we seem to be exiting "emergency mode" and, according to the ECB's logic, returning to "business as usual". ...


The new phase would seem to spell disaster for debtors (individual or governments), for whom inflation would seem their best hope of long-term solvency.

The new phase is more related to the need/desire to see the banking sector finally restructured and recapitalised and off life support. Some of the healthier banks are already off life support and the others need a little nudge since governments and regulators aren't doing their job here.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Apr 7th, 2011 at 04:48:30 PM EST

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