Quote:
Originally Posted by ArturiusX
Do you think the ECB wants a higher or lower exchange rate?
to be honest, im not so sure. If anything, from recent experience im thinking they actually want a higher currency because they have always done something to revive the euro when it falls, rather than use that as cause to celebrate.
i think most of the trade wars anyways are occurring within the union, so an effect on the euro does not aid that end.
Quote:
If they're truly worried about inflation, they'd try and keep their currency strong, wouldn't they?
ya you'd think. but like all central banks, they want to have their cake and eat it too. They can't fight inflation and increase their bond buying and back door swap deals, etc. But thats essentially whats on the table for them. This is the trouble with inflation when economic problems remain, you know longer get the appearance of a free lunch and can only fight inflation while cutting off dependents.
This is why im confused that the market has no clued into this fact. Somehow, there is confidence that europe will fight inflation and keep all the nations under support, an impossibility as i see it. The only extent their able to do that is thanks to the support from china and japan, but still the ECB is integral to the financial stability of the peripheries in the short term.