How Can a Single Interest Rate Serve 19 Widely Varying Eurozone Economies? – Mish Talk

How Can a Single Interest Rate Serve 19 Widely Varying Eurozone Economies? – Mish Talk


CPI data from OECD, Chart by Mish

CPI data from OECD, Chart by Mish

The Eurozone consists of 19 countries: Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Greece, Slovenia, Cyprus, Malta, Slovakia, Estonia, Latvia and Lithuania.

Given widely differing economies and rates of inflation it is impossible for the ECB to set an interest rates that serves every country that has adopted the Euro as its currency.



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