The covid-19 pandemic is plausibly the biggest challenge to Europe’s economies since the Great Depression. The coronavirus is hurting all European countries at the same time — but with differing economic fallout. Countries such as Germany and the Netherlands can easily borrow money to respond to the crash.
But countries like Italy and Spain fear that their bond yields — the price they pay to borrow money — will spike if they increase their public debt.
Are common European bonds a possible solution? Some countries and economists have called for this response. Such suggestions have always failed in the past, because of perceived public opposition in northern countries like Germany and the Netherlands.… Seguir leyendo »