After reading this, Swifties to UBS!
Are Taylor Swift concerts really enough to move the needle on global inflation and derail monetary policy efforts?
Eurozone inflation and PMI got a boost this month, but it was entirely artificial — caused by the fact that France hosted this year’s Olympic Games. The surge in economic activity created a massive but entirely transitory increase in demand, dragging up Eurozone economic data points. Meanwhile, fundamentals remain weaker, and major Eurozone economies outside of France continue to contract, fueling motivation for the ECB to return to cutting interest rates again next month.
However, with interest rates already too low to properly get inflation under control (with or without Taylor Swift and the Olympics), a rate cut will only push high prices even higher for Europeans.
And in countries like France, with high debt and unsustainable spending, there’s an increasing chance of a real debt crisis that ripples through the rest of Europe.
Even in countries like Germany where debt-to-GDP ratios are lower this year, contracting economies keep signaling trouble.
For better or worse, none of this is Taylor Swift’s fault, so Swifites are off the hook — but the same can’t be said for central banks.
"And Swifties after reading it again.*
We don't care!!
What do you say guys?
Can Taylor Swift really impact global economy? Is she bigger than the US?