Recent data releases related to the Eurozone have been disappointing. This column argues that momentum from the long-delayed 2014-15 recovery is faltering because the Eurozone economy is affected, with a lag, by the US slowdown. The traditional, lagged relationship between the EZ and US business cycles – which disappeared in the aftermath of the Global Crisis – is now reasserting itself.
Alberto Caruso, Thomas Hasenzagl, Filippo Pellegrino, Lucrezia Reichlin, 22 February 2016
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