09.05.2014 - One currency, divergent economies
One thing that the European Central Bank (ECB) does not lack is advice on tackling low inflation. This week the OECD added its voice to that of the IMF in April in urging prompt action, calling for a cut in the banks main lending rate, from the already low 0.25% reached in November to zero. The ECBs governing council, meeting on May 8th (after The Economist had gone to press), was not expected to respond to this plea any more than it did to the IMFs. The difficulty facing the 24-strong council is highlighted by the euro zones differing labour-market trajectories over the past decade (a period during which it expanded from 12 to 18 countries)...............................................Full Article: Source
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