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:

Anonymous 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.