Eurozone Governments and the Financial Markets: A Troubled Marriage

by Sabrina I. Pacifici on October 16, 2011

Eurozone Governments and the Financial Markets: A Troubled Marriage, by Douglas J. Elliott, The Brookings Institution, October 12, 2011

  • “Financial markets and the governments of advanced economies around the world are inextricably tied together in an unbreakable marriage. The two sides need each other. Governments borrow huge sums of money and, for its part, the financial system requires a large base of safe, liquid assets to function efficiently. In some times and places, however, that marriage is very troubled. Right now, the Eurozone is a prime example. The financial markets do not seem to understand or trust the governments and those sentiments are returned by many policymakers, including key ones.”
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