Pressure on Emerging Economies from the Overvalued Dollar

The rise of the US currency depletes their limited foreign exchange reserves and stunts growth by making their exports more expensive. The strengthening of the dollar over the past year due to continued interest rate hikes by the US Federal Reserve has put severe pressure on many emerging economies, which have seen their national currencies …

How the ECB Will Force Banks to Raise Deposit Rates

The monetary policy of the EU it seems at the moment to be on the one hand ineffective, on the other hand leading to a dead end causing negative effects on the economy, with no benefits for anyone except the banks who will see their profits increase from the increase in loan rates while they …

A Global Liquidity Crisis is beginning to appear on the Horizon

The dynamics of the global market vis-à-vis all those markets where a global liquidity that in 2019 reached 130 trillion dollars, well above the global GDP of 80 trillion dollars, is looking for a way out, tends to be the most decisive for the developments in the global economy. There are estimates that today this …

What do the Spread Control Mechanism mean for the EU Economy?

The 50 basis point increase in the ECB’s deposit rate, double what the ECB had initially communicated and in line with the hawks’ wish, was combined with the announcement of a new spread control tool, the Transmission Protection Instrument (TPI). The threat of recession is greater in Europe: the war in Ukraine and the energy …

Greece Returns Rapidly to the Era of Financial Support Packages

Greece, a member-country of the Eurozone/EU with 388 billion euros in public debt and a deindustrialized economy, is in danger of paying dearly for the EU sanctions imposed on Russia. The debt of the General Government of Greece, despite being sustainable in the medium term, despite being supported by the ECB and despite the fact …

The South Eurozone on the red line due to the Explosion of Borrowing Costs

Due to rising global and mainly European inflation, interest rates are generally rising as central banks fight inflation and this is certainly not a time when investors want to increase their exposure to government bonds. Trust Economics points out that Greece’s public debt (Eurozone / EU country) remains viable despite rising borrowing costs and estimates …

Properties: Reasons to Boost Their Prices

The constant upward trend in property prices is an international phenomenon. In the Eurozone, the growth rate of house prices for Q2 2021 reached 6.8% on an annualized basis. Respectively, in OECD countries, nominal house prices increased by 12.3% on average, on an annual basis. The countries with the highest house prices were Turkey (30.2%), …

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