ECB The real goal of policy makers is keeping the euro zone’s weakest members from leaving the currency union
— and that may be impossible.
Central banks have scarcely covered themselves in glory these past few years. Most have one goal and one goal only: to keep inflation low. In most countries, they have spectacularly failed at this job.
Only in the minds of the ECB would it be anything other than insane to have left its key interest rate unchanged at minus 0.5% throughout this inflationary surge.
Anyone unlucky enough to have bought a zero-coupon 30-year Italian bond at the peak last year would now have lost about half their money in nominal terms and a lot more in real terms.
As I said at the beginning January, this is likely to be a make-or-break year for the euro.
Richard Cookson Bloomberg 13 juni 2022
The Euro Is Facing a Make-or-Break Year
Italy’s bloated debt load may finally doom the experiment with Europe’s shared currency.
https://www.bloomberg.com/opinion/articles/2022-01-11/the-euro-is-facing-a-make-or-break-year
Surging borrowing costs take Italy ‘close to the danger zone’
Planned withdrawal of ECB stimulus intensifies debate over Rome’s debt
https://www.ft.com/content/fbb5149a-6a17-48df-a972-aa88382f533f
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