With just released inflation figures out of Germany coming weaker than expected, Mario Draghi’s monetary nightmare – how to spur credit creation in Europe to the private sector – just got even worse. Incidentally the topic of Draghi’s “Monetary Nightmare” is well-known to regular readers and has been covered here extensively in the past, most recently here. So while we await to see how the ongoing deflation in Europe, soon hitting its core too, spreads through the system, the most recent data out of Europe is that lending to non-financial corporations declined once again in January, this time by €11.7billion, adjusted for securitizations and sales. On an annual basis, the decline in January was -2.0%, the same as December, and worse than the -1.8% in November as reported by the ECB.
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Lucas 2012 Infos 