Euro Zone banks are not to responding to the ECB’s generous boost to liquidity by increasing their lending.
Low wage growth may morph from an inexplicable aspect of the current economic setting to a driving force behind a credit crunch and broad contraction of aggregate demand.
It is both cheap and easy to blame the Q1 slowdown on bad weather. The real culprit is credit.
Everything we know about economics suggests that everyone should want something if it does not cost anything. For most of us, however, that inclination is quick to pass, replaced by more pragmatic assessments.