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Macronote #1

A new format Roger is trying out… spontaneous responses to market events and data releases. Interesting for all, but especially useful if you’re a user and can open all the charts in the application.

One thing that a lot of people seem to be looking at right now is Italian data. And in particular, everything that concerns Italy’s place in Europe. Among that data is of course current account data and other, mainly real, data sets.

However, in the wake of the Euro-crisis, whence commercial banks slowed the money creation process, the ESCB needed to take over some of the intermediation function and, due to perceived increase in redenomination risks, some of the intra-Euro area financing of current accounts. Such financing flows are visible in the Target 2 balances and have been in focus over the past couple of years. A more comprehensive, and quite balanced, explanation of the Target 2 system can be found on Wikipedia.

In Macrobond, you’ll find it here:


ECB also provides data on (i.a.) its PSPP-programme – id est, its quantitative easing purchases. That provoked quite a stir the other day, with an FT-article implying that the drop in purchases of Italian government bonds had something to do with the political “Barbarians at the gate” of Rome, when it was more a function of very large German redemptions. You can see that data in both relative and absolute numbers here:


That’s all folks!

If you aren't a Macrobond user yet have a look here to find out more about our application and data.



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We don’t usually have views and opinions about economic and financial states of affairs, (not ones that we express publicly as a company, anyway). We do believe, however, that people can and do appreciate a variety of perspectives. What you’ve just read is the perspective of our resident chief economist. While we think he’s very smart, Macrobond Financial does not expressly endorse the views he presents here. And, as the old adage goes, you shouldn’t believe everything you read (not without finding the data, performing a few analyses and presenting it in a nice chart). We want to make it clear that we are not offering this information as investment advice. That being said, if you have the application you can easily check everything that’s mentioned here, and decide for yourself. If you don’t have the application, now you have a great reason to get it.