{"id":3041,"date":"2010-07-28T11:19:59","date_gmt":"2010-07-28T11:19:59","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=3041"},"modified":"2025-03-27T15:49:05","modified_gmt":"2025-03-27T15:49:05","slug":"eurozone-economic-resilience-consistent-with-monetary-trends","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=3041","title":{"rendered":"Eurozone economic resilience consistent with monetary trends"},"content":{"rendered":"<p>Recent Eurozone economic news has been stronger than expected and somewhat at odds with trends in other countries, particularly the US. This could reflect the region&#8217;s historical tendency to lag the global cycle but is also consistent with relative monetary trends.<\/p>\n<p>As previously discussed, narrow money, M1, is likely to be a better guide to monetary conditions at present than broader measures, with the demand to hold broad money depressed by negative real deposit interest rates. Eurozone real M1 rose by 2.7%, or 5.5% annualised, in the six months to June, comfortably above growth rates in the US, Japan and, probably, the UK (for which June figures are published tomorrow) &ndash; see first chart. Among major developed economies, real M1 expansion is faster only in Switzerland and Canada &ndash; both economies have been growing solidly.<\/p>\n<p>A <a href=\"http:\/\/www.moneymovesmarkets.com\/journal\/2010\/5\/21\/fed-ecb-inject-liquidity-but-is-it-enough.html\">post<\/a> in May suggested that relatively strong M1 expansion would contribute to a reversal of the underperformance of Eurozone equity markets earlier in 2010. The region has since rallied relative to the US and Japan &ndash; second chart &ndash; although non-EMU European markets like the UK and Sweden have also performed strongly, suggesting that monetary trends are not the sole explanation.<\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" src=\"\/storage\/graphs\/real-money-280710.gif?__SQUARESPACE_CACHEVERSION=1280317256422\" alt=\"\" \/><\/span><\/span><\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" src=\"\/storage\/graphs\/performance-280710.gif?__SQUARESPACE_CACHEVERSION=1280317271257\" alt=\"\" \/><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recent Eurozone economic news has been stronger than expected and somewhat at odds with trends in other countries, particularly the US. This could reflect the region&#8217;s historical tendency to lag the global cycle but is also consistent with relative monetary trends. As previously discussed, narrow money, M1, is likely to be a better guide to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3041","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3041"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3041\/revisions"}],"predecessor-version":[{"id":5350,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3041\/revisions\/5350"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}