The euro area has resumed growth, albeit in a somewhat hesitant fashion and with noticeable differences in performance by country. Some quite pronounced adjustments to cost structures are occurring in some of the so-called “peripheral” countries, as needed under the single currency area arrangement.
In Japan, the initial results of the policy measures over the past 18 months have been quite positive, though of course the proposed “third arrow” reforms are yet to be fully delivered. The much anticipated “tapering” of the US Federal Reserve’s monthly asset purchases commenced in December.