Should the ECB actually cut interest rates before the Fed, it will have to intervene massively in the bond market to defend the interest rate spread and prevent a massive outflow of capital from the eurozone.
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42 sats \ 0 replies \ @grayruby 28 May 2024
This is the game of chicken right now. Canada is playing as well.
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21 sats \ 0 replies \ @didiplaywell 28 May 2024
Interest rates are always strictly as high as emission is. Any increment in the interest rates is a sinceration of the actual level of emission and can only, at most, counter inflation. Thus any juggling with interest rates is just like playing with the AC to ease fever.
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