The impact of the economic crisis is still being felt in the eurozone with a lack of growth and high unemployment especially among the young. Now the European Central Bank seems to be indicating that it will tackle a deteriorating financial situation in some countries by further cuts in interest rates which could generate yet more problems.

<i>European monetary policy has changed tack again. The European Central Bank, having announced for the last year that everything is under control and recovery is slowly underway, has now revealed a new round of quantitative easing and possibly lower interest rates. Germany’s Bundesbank has endorsed this strategy. Yet, it is not obvious that...

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Professor Enrico Colombatto
High taxes, reduced pensions and rampant unemployment have put a significant number of households under pressure in several European countries
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