Posts Tagged ‘Spanish debt’
Daring Draghi
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…
Read MoreEuroland, no Disneyland
To keep Spain and Italy in the euro, the ECB must buy Italian and Spanish bonds, as nobody else will. And, it can only do so if Merkel allows it. Separately, there’s the possibility that the German Constitutional Court will prohibit Germany from contributing to the European bailout fund. Assuming Germany green-lights everything, Italy may…
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