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	<title>Eurozone &#8211; RFR</title>
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	<description>GLOBAL MACRO AND THEMATIC INDEPENDENT RESEARCH</description>
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		<title>The rising euro is taking more wind than expected out of eurozone inflation’s sails</title>
		<link>https://richesflores.com/2017/12/04/the-rising-euro-is-taking-more-wind-than-expected-out-of-eurozone-inflations-sails/</link>
		
		<dc:creator><![CDATA[Véronique Riches-Flores]]></dc:creator>
		<pubDate>Mon, 04 Dec 2017 18:16:25 +0000</pubDate>
				<category><![CDATA[Euro zone]]></category>
		<category><![CDATA[Inflation]]></category>
		<category><![CDATA[WEEKLY]]></category>
		<category><![CDATA[EURO]]></category>
		<category><![CDATA[Eurozone]]></category>
		<guid isPermaLink="false">https://richesflores.com/?p=9101</guid>

					<description><![CDATA[Until now, economists have not been particularly worried by the euro’s rise...]]></description>
		
		
		
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		<item>
		<title>Now What Do We Do?</title>
		<link>https://richesflores.com/2014/07/18/now-what-do-we-do/</link>
		
		<dc:creator><![CDATA[Véronique Riches-Flores]]></dc:creator>
		<pubDate>Fri, 18 Jul 2014 06:42:42 +0000</pubDate>
				<category><![CDATA[Euro zone]]></category>
		<category><![CDATA[FOOD FOR THOUGHT]]></category>
		<category><![CDATA[GLOBAL MACRO]]></category>
		<category><![CDATA[economic policy]]></category>
		<category><![CDATA[Eurozone]]></category>
		<guid isPermaLink="false">https://richesflores.com/?p=4295</guid>

					<description><![CDATA[The raft of data coming out of the euro area in recent weeks has been more and more mediocre and has erased all doubts: the strategy for extricating the economy from the crisis in the past few years has been a failure. None of the mechanisms born of resulting from decisions made by European leaders have delivered results or are about to:
-the structural policies aimed at improving competitiveness have failed, because global trade is tanking
-as proof: Germany’s export outlook is sputtering and the ability of the euro area’s biggest economy to act as the region’s growth driver (i.e. its “appointed” role) is going up in smoke;
-fiscal austerity’s only effect, under such conditions, is to fuel deflationary pressures and are counter-productive in controlling public debt levels.

These failures hardly come as a surprise. Like many of our peers, we have been decrying these shortcomings but did we really need to spell them out before hoping to make a convincing enough argument to effect the urgent change in the direction of European economic policy? With the situation becoming increasingly dire, where should, at present, our fears and hopes lie?]]></description>
		
		
		
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		<title>When the Eurozone Policy Mix Becomes a Weapon of Mass Destruction</title>
		<link>https://richesflores.com/2012/11/04/when-the-eurozone-policy-mix-becomes-a-weapon-of-mass-destruction/</link>
		
		<dc:creator><![CDATA[Véronique Riches-Flores]]></dc:creator>
		<pubDate>Sun, 04 Nov 2012 14:45:04 +0000</pubDate>
				<category><![CDATA[Euro zone]]></category>
		<category><![CDATA[GLOBAL MACRO]]></category>
		<category><![CDATA[Eurozone]]></category>
		<category><![CDATA[Fiscal Stance]]></category>
		<category><![CDATA[Taylor rule]]></category>
		<guid isPermaLink="false">https://richesflores.com/?p=892</guid>

					<description><![CDATA[The perspective of a recession which is unlikely to be countered with the kind of economic policy capable of cushioning the blow is both unprecedented and profoundly disconcerting. Counter-cyclical policies are crucial to stemming the snowball effects set in motion by economic contraction. Without them, there is a serious risk of getting trapped in a lasting depression. Our economic forecasts for the Eurozone would suggest a cut in ECB's key rates to -1% and an increase in the cyclically-adjusted budget balance to be reduced by between 1 and 2 percentage points to mitigate the recession. These adjustments will simply not happen. All other things being equal, the current policy mix should on average cost up to 1.6 percent of eurozone GDP in 2013, plus more than one additional percent due to the absence of automatic stabilizers. The bill will be far too steep for an already ailing euro area making it crystal-clear that a shift in economic policy is in the cards. At this stage, the million-dollar question is whether such long-overdue changes still stand a chance of pulling Europe back from the brink in time.]]></description>
		
		
		
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