Two new members of Riksbank's Executive Board: Floden and Skingsley. Signals more dovish policies, argues @codendahl http://t.co/A6Z9mqCV7l
10 minutes ago
Category Archive: Italy
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European Daily Catch: Know Your Consumers
Today’s European Daily Catch compares the aggregate implications of the reported January 1-point rise in French household confidence to the reported January stabilization of Italian consumer confidence. Specifically, French consumers could be ‘happier’ but that doesn’t necessarily mean they’re spending more, while Italian household confidence translates rather directly to aggregate spending patterns. Domestic demand is a large contributor to GDP growth [...]
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European Policy Makers Don’t Understand But Markets Do
So here we are: the Italian yield curve is flat at above 7%; the government institution is in question; and the ECB is using its SMP purchase program as a carrot to drive austerity implementation in and Berlusconi out. Some would argue that the ‘market is irrational’ – Italy faces a liquidity not solvency crisis. That’s the [...]
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Worries About Italy: Growth and Politics
Current bond market pricing implies a 6.17% yield on a 10-yr Italian government bond, or 430 basis points (%/100) over a like German government bond. I’d call this distressed levels for Italian debt, especially for an economy that is very likely contracting as we speak. Today Mark Thoma points us to Kash Mansori’s article on [...]
