Is the French economy holding the Eurozone together?

The French economy seems to be underpinning the recent record levels in the euro, and acting as a buffer within the Eurozone. But why is France proving so resilient to the global slowdown?

What is really notable about the current eurozone slowdown is to be found - as is ever the case - the details. The first and most notable of these is the way in which inflation is obviously crimping efforts from the ECB to use conventional monetary policy (namely lowering interest rates) to help the ailing Spanish (see here) and Italian (see here) economies.

As a result the Sabre rattling continues in Frankfurt and the euro continues to move onwards and upwards, touching an all time high of $1.6019 yesterday (for a fuller exploration of some of the issues which arise here, see Claus Vistesen's recent The ECB - One Play-Book, One Page, One Purpose post).

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