1.13. The accompanying diagram shows data for the interest rate on 10-year eurozone government bonds as reported by the European Central Bank and inflation for the eurozone for 1996 through mid-2008. How would you describe the relationship between the two? How does the pattern compare to that of the United States in Figure 26-8?

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10-year euro bond rate, eurozone inflation rate 9% 8 7 65432 Interest rate Inflation rate 1 1996 1998 2000 2002 2004 2006 2008 Year