Déjà Vu All Over Again

Latest on central banks, liquidity, rates and much more, by PIMCO’s T ony Crescenzi.

• ​If the eurozone is to endure, it will require reduced economic differences among countries and larger common fiscal capacity.
• Emerging market central banks are likely to remain in wait-and-see mode while looking to the U.S. for clarity on the fiscal negotiations and domestic macro prints for signs of moderation in both inflation and activity.
• While central banks in advanced economies have not traditionally used explicit policies to target exchange rates, the European debt crisis may change all that.

Full read here.