Two years have passed since Mario Draghi promised to do “whatever it takes” to save the euro. The bond markets have calmed down but the crisis of the euro zone has not yet abated. Isolated pieces of positive information do not automatically imply a sustained recovery let alone justify triumphalism.
While improving marginally, the rate of unemployment remains exceptionally high in historical terms. And continued growth cannot be taken for granted; even AAA countries like Germany, the Netherlands, and Finland have recently experienced quarters of negative growth. Ominously, various countries with large debt burdens (e.g. Greece, Italy, Spain, Portugal) are either in or on the verge of a deflationary situation.