What have you always wondered about the economy? Tell Us
Fiscal Cliff

Europe, post-fiscal cliff

Stephen Beard Jan 2, 2013
HTML EMBED:
COPY
Fiscal Cliff

Europe, post-fiscal cliff

Stephen Beard Jan 2, 2013
HTML EMBED:
COPY

European stocks have been caught up in the global post-cliff euphoria. The main market indices in London, Paris and Frankfurt scored gains of up to two percent in early trading today.   

European investors were showing their relief that the U.S. did not plunge over the cliff dragging Europe’s biggest export market with it. But few seriously believe that yesterday’s deal solves America’s debt problem; analysts acknowledge that a lasting solution has merely been deferred at least until February when a decision will be required to raise the U.S. debt ceiling. 

The delay is highly ironic to some policy watchers as the U.S. has been taking Europe to task for foot-dragging with its debt crisis:

“Politicians and commentators  have been fiercely critical of Europe kicking the can down the road,” says financial consultant Louise Cooper, “but this is exactly what America is doing.”

Cooper claims there’s one reason that politicians on both sides of the Pond have been able to postpone really decisive action over debt: Their central banks are showering the markets with printed money, pushing down interest rates and artificially reducing the danger of default.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.