Given that this mechanism played a crucial part in the Eurozone crisis (cf paper), it is a safe bet that, at some point, the #ECB will intervene to cap the yields on 🇨🇵 sovereign bonds and thus prevent the current turmoil to turn into a systemic €A crisis.
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onlinelibrary.wiley.com/doi/full/10....
The question now is whether Berlin can turn its economic weight into enough support among euro area partners. A second question is whether a seat won that way sits easily on a board whose members are expected to leave their nationality at the door. #ECB #Klingbeil #Eurozone
