Saturday, July 07, 2012

They just need more frequent summits

Eurozone policymakers have produced an endless stream of summits with an endless stream of announcements, that generally make folks happy for a week or so. The latest summit that produced "Euro-wide" bank supervision/bailouts is no exception, as this graph from Soberlook demonstrates:

Spanish interest rates fell and stayed down for around 4 days before rising above pre-summit values (I know the graph is of the spread, but the same is true for the Spanish rate). The Euro appreciated and stayed that way for around 4 days before falling below pre-summit values.

I now believe there is only one way to save the Euro: Weekly Summits!!

1 comment:

BR said...

It starts with occasional summit use at parties, but inevitably leads to full fledged summit addiction with daily, hourly and even continuous summit use being required to keep you propped up.