Falling inflation and high unemployment puts pressure on European Central Banks to cut rates
Washington Post, April 30, 2013
http://www.washingtonpost.com/business/another-fall-in-eurozone-inflation-piles-pressure-on-european-central-bank-to-cut-main-rate/2013/04/30/c7cb6476-b174-11e2-9fb1-62de9581c946_story.html
Summary
People tend to buy less! So, inflation rate is falling, but unemployment begins to rise. Among the financial chaos, European Central Bank is suffering difficulties of reducing skyrocketed unemployment rate in some European countries and of encouraging spending of people. For the most part, to motivate spending, there is no way but to lower interest rate so that people can borrow more money and buy things more.
My thought
I believe there is no way but to lower interest rate in order to drag up shrunken consumption. While several countries have been still suffering economic difficulty for several years, increase of unemployment rate does not give a good sign that European industry may revive soon. I hope ECB to take a wise choice so that it can prevent entire Europe and world market to suffer another big trouble in the future.
oh...that's bad, very bad. I hope those issues won't rise when I get to earn my own money!
ReplyDeleteFrankly, I like spending money, but I still wouldn't borrow others' money to buy things for myself.
ReplyDeleteI hope European economy will recover soon so that people can live without worrying about unemployment.
ReplyDelete