• In today’s Comment we will discuss the seemingly perplexing decline in excess liquidity in the Eurozone banking system since the summer, which paradoxically coincided with lower settlements of 3-months Euribor even after the year-turn. The chart below tells all: excess liquidity levels in the Eurozone banking system are still slightly lower than they were in the summer, despite Lagarde & Co running the printing press without interruption. And while Euribor showed an extraordinary decline into the year-turn, subsequent settlements are lower than they were before the turn effect came into play in the fourth quarter of 2021:

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