VoxEU Talk

Liquidity support is essential for supporting reforms in the Eurozone

Giancarlo Corsetti talks to Viv Davies about using cumulated inflation differentials as a guide for pricing sovereign risk across Eurozone countries. They also discuss the fiscal compact, the debate on growth versus austerity in the Eurozone and the recent downgrading of Italy and other Eurozone countries. Corsetti is of the opinion that liquidity support is essential for, and compatible, with reforms in the failing Eurozone economies.