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Category:1926 births
Category:2006 deaths
Category:Senegalese novelists
Category:Senegalese dramatists and playwrights
Category:20th-century novelistsLONDON — There's been talk about the European Central Bank starting to cut rates, and I suspect it's the talk more than anything else at the moment.
The ECB is the smallest part of the eurozone monetary union, so it doesn't really matter what it does. At least that's what we thought.
But to understand what is happening in the eurozone right now, you have to start with the ECB. Because it's the ECB that's made the biggest move, and that's the one we're focusing on here.
There's been a lot of bad news for the eurozone this year, including the Greek crisis and a string of bank failures. This is the kind of thing that the ECB wants to stop. It's the kind of thing that would mean that the eurozone would turn around in its tracks.
And that's what it might be about to do. That's what the ECB will do — something, or many things.
One thing the ECB is considering is cutting rates, even if it doesn't actually do it.
What do I mean? I mean that the ECB is pondering cutting rates. It has some new numbers that it likes. They say that the eurozone is doing all right. It's growing again, employment is rising, and wages are rising.
The eurozone is getting better. Not as good as America — that's a different story — but getting better.
That's the last time we saw numbers from the ECB. And as you can see from the graph below, the eurozone has been growing all right, but in a very weak way.
For the last seven quarters the eurozone economy has grown by just 0.2 percent, and last year it grew by just 0.9 percent.
You can understand why the ECB wants to stop that.
And this is why it will cut rates.
The ECB has the ability to buy up eurozone government bonds.
It can do that if it wants to. It doesn't have to.
But it's a thing the ECB likes to do. It's a tool it can use to try to stabilize the eurozone.
And the ECB could do that right now by buying up eurozone ac619d1d87
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