Daring Draghi
09/12/2012 | | central bank bailout, ECB, Euro, Italian debt, Italy, Low productivity, Southern Europe, Spain, Spanish debt
Last week the ECB, finally, agreed to make unlimited purchases of Spanish and Italian short-term bonds if the countries ask for help and agree to make “changes” to their economies. While this will buy time for politicians, it does nothing to solve the deep structural problems including the persistently low productivity of the Southern European countries that has been exacerbated by joining the eurozone. This saga ain’t over.