Difference in interest rate in europe with same currency

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Reference no: EM13835262

Why do we observe that European Countries post different interest rate while they are using the same currency, euro? Does this provide us to make an arbitrage profit? If it does, how does the market adjust to prevent it happening? Or, Can we simply not make any arbitrage profit from current situation? If not, explain why we see this difference in interest rate in Europe with same currency.

Reference no: EM13835262

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