Daily Archives December 20, 2013

Q&A: If ECB monetizes, what is the effect of interest rates and the exchange rate in Europe?

December 20, 2013 Monetise Your Website

Question by Kalaki: If ECB monetizes, just what is the result of interest fees and the exchange fee in Europe?
If the European Reserve bank monetizes, what is the impact of interest rate fees and the currency exchange rate in Europe?

Best response:

Solution by Uncle Leo
The conventional wisdom is that interest rates for Euro-denominated financial obligation would certainly rise and the value of the Euro would certainly fall in the money markets. However forecast is tough because the considerable quantity of government interference in the monetary markets is distorting common market forces. Also, the opacity of the derivatives market makes it essentially difficult to assess the net influence of by-products direct exposures...

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