Wednesday, January 16, 2002
No change there

I'm getting the feeling that the Euro Elite has been a bit too smug a bit too soon. Remember all those triumphant grins on 1 January? What the media didn't say was that the crunch was yet to come. Euroland will be withdrawing the old currencies in the next month to six weeks. And then any shortage of Euros will start to hurt, and not at the start when the local currencies can take the slack.

Of course with M0 money supply being changed overnight, the slightest miscalculation as to replacement levels will lead to a jolt in inflation or deflation in various countries (and differing jolts). This will only show up after a couple of months and will be ignored by the media if it does.


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