- ECB has to act accordingly based on that
- Each euro state has its own responsibility for its own economic policy
- It may be that we will see a very difficult period in Italy amid political turmoil
Nothing too interesting from Rehn but it does highlight the challenges for ECB policymakers when making any decision. In essence, the central bank has to try and backstop Italy amid fragmentation risks as they try to normalise policy in the fight against inflation.
This article was written by Justin Low at www.forexlive.com.
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