By Adolfo Laurenti, Chief International Economist for Mesirow Financial
In this edition of Themes on Global Markets, Mesirow Financial's Chief International Economist updates the outlook for the Eurozone, where the dominant economy, Germany, appears to be stalling and may need to taste the bitter prescription doled out to its partner countries. Adolfo Laurenti says that, "The Bundesbank message, that monetary policy shall not be a substitute for structural reform and fiscal correction, may now be addressed to Berlin as much as it is to Paris and Rome."
The European Central Bank (ECB), originally modeled on the German central bank, is not in a position to drop money from helicopters, as the former Federal Reserve Chairman Ben Bernanke is said to have done in his efforts to stimulate growth. Laurenti states outright: "Count us out of those who anticipate a foray by the ECB toward quantitative easing (QE) the policy recipe that works in the U.S. may not work equally well for the single currency area."
For more on what Laurenti terms, "The Good, the Bad and the Ugly," among major Eurozone economies, read the latest Themes on the Global Markets newsletterThe August 2014 issue of Themes on the Global Markets, as well as archived issues, can be found at mesirowfinancial.com.
Mesirow Financial is a diversified financial services firm headquartered in Chicago. Founded in 1937, it is an independent, employee-owned firm with approximately 1,200 employees globally. With expertise in Investment Management, Global Markets, Insurance Services and Consulting, Mesirow Financial strives to meet the financial needs of institutions, public sector entities, corporations and individuals. For more information, visit mesirowfinancial.com.
Contacts:
Mesirow Financial
Karen Nye: 312.595.7147
