
Originally Posted by
Joseph20102011
Conclusion.
Italy suffers from:
Having wrong exchange rate. They have lost competitiveness and can't devalue leading to lower growth
Monetary policy is too tight for Italian economy.
There is no lender of last resort.
EU austerity measures (spending cuts) are forcing Italy back into recession leading to a predicted slump in tax revenues. This is making markets nervous about future prospects for Italy.
There seem no practical solutions to returning to strong growth. Again the only medicine seems to be 'spending cuts' and internal devaluation. But, this will be a long drawn out process.
Political instability. Lack of strong cohesive government makes markets more nervous to hold Italian debt.
Similarities between Italy and Greece.
Both countries:
Share decline in competitiveness
Would benefit from devaluation, but in Euro can't
Are experiencing high unemployment and economic stagnation
Must regret being in the Euro.
Related
Facts on European Debt Crisis
Bond Yields on EU debt
Is the UK like Greece and Italy?
Economics Essays: Economic Problems of Italy
dili diay tawag ani bro, misguided fiscal management?
...dili lang kaayo nato taason ug explain bro, laktod istorya, walay appetite mo palit sa Italian tender / bonds kay dili sila mka bayad in the future..
ang perception karon sa Pinas, bisan pa sa 2050, mka bayad ta sa atong e issue ka bonds.. so kinsa man kahay sayop ani rn bro.. sila nga dili mka bayad sa ilang utang 50 years from now.. o kita nga 50 yrs from now ma tiger na..