The head of global macro at KKR tells CNBC that the strong euro is a sign Europe is entering a deflationary cycle.
It is hard to argue with his logic. Japan has seen the JPY strengthen dramatically during its two-decade bout with deflation. The dollar rallied strongly in the wake of the mortgage meltdown in the US and the subsequent deleeraging that went with it.
Perhaps now it is Europe’s turn. And a strong euro is the very last thing it needs.
