Friday, June 6, 2014

They want to take you higher.

The U.K. is thinking of raising rates to avert inflation, whilst the ECB is planning to lower the deposit rate to a minus number to fight deflation at the same time.  Why is it that England, with much higher interest rates than Germany and an equally tight fiscal policy, is having more inflation while Germany is having less inflation?  (FT Weekend, p1)

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