Spiking Skywards? Tackling rising yields in the Eurozone

The discussion in this policy brief has focussed on what can be done in the near-term. The fundamental problems we face are two-fold. First, whatever is economically workable does not seem politically feasible and second, that without a broader more comprehensive solution to the Eurocrisis any steps to address spiking yield would only have a temporary impact. For example, if the possibility of a break-up of the Euro is not credibly taken off the table, the logic of the dumbbell trap in which the Eurozone is presently struck, will continue to dominate.

Sony Kapoor

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