Global growth is at a crucial tipping point

ON EUROPE

Cazenove's Chris Rice discusses the issues which will affect the eurozone this year.

The 2010 euro crisis was the first major unintended consequence of extreme policy as governments globally used their taxpayers’ balance sheets to prop up banking systems. Some countries, ie Ireland and Greece, were never big enough to absorb these losses and state finances fell alongside the banking system. Although this euro risk has not been removed from markets, the effect of loose western money on emerging nations should be of greater concern this year. The ECB has shown signs of being ready to pre-empt increased inflation expectations in the eurozone, and markets are probably ...