Goldman Runs Risk Analysis On Potential European Shocks

In running risk-weighted analysis of potential impact of exogenous changes in six key variables driving the European economy, a Goldman Sachs report notes that the trade-weighted exchange rate, oil price and short-term interest rate changes have, to varying degrees, more impact on expected growth in the region than do changes to fiscal policy and global equity prices. Goldman: Lower oil and Euro currency boosting regional economic prospects The September 3 report, titled “Shocking European output,” notes potential positive impact at present. As oil prices have fallen by nearly half and the Euro has weakened by nearly 10 percent, Goldman’s estimates point…