International Finance

Tag : Eurozone

Economy January-February 2019 Magazine

Too big to fail but big enough to trigger a financial crisis

International Finance
Italy is current bogged down by high debt, low growth and a weak economy. There are very real concerns that it could trigger a massive financial crisis in Europe, and its ongoing disagreement with the European Commission on its budget is making the situation worse. What lies ahead for the country?...

Decoupling Eurozone and US interest rates using unconventional monetary policy

In continental Europe, interest rates tend to swing with their US and UK counterparts only up to 2013 Benoit Mojon Interest rates tend to move together. In Figure 1, we report interest rates on Treasury bonds of five-year maturity for the Eurozone member states that have the best ratings, and for the US, the UK,...