Real Interest Rates and Growth – Euro Area 2009 – 2013

An interesting chart has been published on Bruegel’s blog (Bruegel is a Think Tank from Belgium see http://www.bruegel.org ). On one side of this chart there are real interest rates for Euro Area countries from 2009 to 2013 and on the other average growth numbers for the same countries on the same period. Spontaneously there is no causality but we see that on the period high real interest rates are associated with low growth performances. That’s a reason for Mario Draghi try to reduce fragmentation on financial market. Continue reading