Economists often struggle to isolate the factors that are driving an economy up or down.

Historic data is a cornerstone of any economic analysis, so having your finger on the pulse of what is happening in real time can be a challenge.

I say this because there is — dare we say it — a feelgood factor taking hold within the Irish economy. That sounds bonkers in an environment that …

Eurozone consumer prices fell again in March, as expected, but the decline was the smallest this year, indicating the price of goods and services could start rising again soon.

Meanwhile, the region’s unemployment rate fell to its lowest in almost three years, a sign the economy is picking up steam and inflation is likely to rise.

Consumer prices in the 19 countries sharing the euro fell 0.1%, year-on-year, this month, …

DEBT in the Eurozone is at dangerous levels, the head of Germany’s central bank has warned.

Jens Weidmann, who is also on the governing council of the European Central Bank (ECB), called for banks’ exposure to the debt of individual countries to be capped.

“In the euro area we are already in the danger zone – at least with regard to public debt standing at 91pc and corporate debt at …

A noticeable feature of foreign exchange markets this year has been much greater uncertainty and volatility, writes Oliver Mangan.

Key exchange rates have moved out of well-established trading ranges, while there have been big currency moves over short periods of time, as well as increased volatility, with currencies moving in one direction and then another.

The major trends are clear, though, with the dollar and sterling rising strongly against the …

The European Central Bank has quietly shelved its policy of requiring clearing houses handling euro-denominated securities to be located inside the euro zone, after the measure was rejected by a top European court, a source at the central bank said.

Britain had challenged the policy in the European Union’s second-highest court, fearing it would damage London’s role as a finance centre, and the court ruled earlier this month that the …

Lending to companies and households in the eurozone rose for a fourth month in February, signalling that the ECB’s record monetary stimulus is finally reaching the real economy.

Eurozone bank lending climbed 0.2% from January, the ECB said yesterday.

The run of monthly increases is the longest since October 2011.

Financial services group, IFG anticipates “meaningful growth” in group profitability in 2015 and has said it will adopt “a more progressive” approach to dividend payments to shareholders.

The Dublin-headquartered pensions specialist — which is now wholly focused on the UK market, following last year’s sale of its non-core Irish operations — yesterday reported an 8.2% fall in annual pre-tax profits, for 2014, to £4.6m (€6.24m); although group revenue marginally increased …

Bank lending will remain a crucial source of funding for SMEs despite attempts to develop alternative forms of finance, according to Central Bank deputy governor Cyril Roux.

Even though a large number of SMEs acquired unsustainable property- related debt during the boom, the improving economy is having a positive impact on loan arrears, Mr Roux said.

The Central Bank has strict guidelines in place to ensure that the banks have …

Government efforts to convince the European Commission to allow greater flexibility in putting together the next budget have been handed significant backing from the IMF.

It rowed in behind Finance Minister Michael Noonan’s claims that further flexibility should be afforded to Ireland as the EU’s budgetary rules begin to apply to the country from the next budget onwards, following the bailout exit.

Earlier this month, Mr Noonan said he was …

The impact of asset purchases by the European Central Bank is visible in the euro-area economy, according to Governing Council member Erkki Liikanen.

“Monetary-policy decisions and the measures taken have already had a clear, positive impact on the economic outlook” said Liikanen, who also heads the Helsinki-based Bank of Finland, yesterday.

“The ECB is committed to delivering on its primary mandate: price stability,” he said.