3 ms·

Taking bets on first country to get into crisis mode: my money is on Italy

• IfOnlyYouKnew 4y ago
  Their debt is worth 10 % less than it was a year ago in real terms, so they are arguably in a better situation now than in the past.
  • kgwgk 4y ago
    The interest rate they have to pay now when they issue 10-year bonds is more than fives times what they were paying one year ago though (3.6% vs 0.7%).
• tlamponi 4y ago
  Like I posted in another comment, the Asset purchase programme (APP) and pandemic emergency purchase programme (PEPP) will continue for some time, so I'd think they plan to use those as lever for such things, iow. the lending rates aren't the single "tunable" parameter, for better or worse. FWIW, until recently I was cautiously optimistic w.r.t. Italy, but the stunt of ex-premier Conte's M5S and Salvini's Lega driving out Draghi's (relatively) competent gov in favor of populism damped that a bit.. One of the biggest droughts in Italy's history won't help the economy either.