This is an excellent article from leading Oxford macro-economist, Simon Wren-Lewis.
Wren-Lewis takes a very hard look at ECB head, Mario Draghi‘s speech, at the symposium in Jackson Hole, US. The conclusion is that whilst there is some comfort, the words are still ambiguous, so there could still be more pain for Southern Europe.
For me, it is more interesting and positive that the European Commission are going to find EUR 0.5 billion for additional investment in both the public and private sector.
Given Draghi’s ambiguous performance, I fear that speculators will again target the Euro.
For the moment, I see little let up of the excessive austerity heaped on Southern Europe by the troika of the IMF, the ECB and the European Commission. Jobs come from small businesses but they are still being starved of funding in Greece, Portugal, Spain, Cyprus, and Italy – so eye-watering unemployment rates are likely to continue.