by Markus Gaertner on 03/04/2011
Among the developments that I nearly make angry incomprehension before, today's reaction is one of the foreign exchange markets on the statements of Mr Trichet. The ECB president, with his statement that you had to deal with inflation "high alert", made big headlines. Many now expect
in April by raising interest rates for the euro zone. This allowed the euro to rise to 1.40 against the dollar.
can tell me one, why reinforce the words from Trichet the Euro? The highly indebted peripheral countries take on their additional debt to grow 6-8% and no. How, then, rising interest rates will have a positive effect, complete mystery to me. The perspective looks to me like this: Trichet, at least wait until after the EU summit before he tightens the reins of interest, perhaps even down to the dust in the Middle East has. But this can take months.
Tut Trichet in the meantime, nothing that inflation will slow growth. He pulls the reins of interest, it will worsen the debt situation of PIGS.
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