Research: Uneven Debt Levels Complicate Eurozone Monetary Policy

View in your browser

Uneven Debt Levels Complicate Eurozone Monetary Policy

By Erik Norland, Senior Economist, CME Group

Highlights:

  • Eurozone countries have varying levels of debt post-recession
  • ECB faces challenges in setting uniform monetary policy for all 19 members
  • Highly indebted members like Ireland, Belgium need low interest rates
  • Low-debt Germany’s growth could withstand higher interest rates
  • ECB could begin raising rates in 2019 or 2020 as unemployment keeps falling