Monetary threesome...The three currencies involved in volatile exchange rate activity pictured in London 13 October 2016. Britain's one pound coin (R) has been losing value against the US dollar and the euro ever since the United Kingdom voted to leave the EU in a referendum in June 2016. The vote generated the term Brexit and the fall out has seen the pound's value plummet against both currencies
For pension funds, insurance companies, and those with a healthy savings' account in Western Europe, historically low-interest rates are a problem. In some Eurozone member states, like Finland, the mortgage market is also beginning to show the traits of a bubble.
While the Federal Reserve is gradually returning to what a decade ago was considered “orthodox” and “normal,” Europe can’t follow. On the surface, the issue at hand is inflation. But, for the European Central Bank, the othe...
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