Is the euro zone’s doom loop still to be feared?
Some reforms have weakened its force, but they have not eliminated it altogether
Those old enough to remember the euro zone’s economic crisis of a decade ago may have felt a shiver of déjà vu on June 15th, when the European Central Bank (ecb) called an emergency meeting to discuss the widening spreads between member countries’ government-bond yields. It is nearly exactly a decade ago that, as yields soared, Mario Draghi, then the president of the ecb, promised to do whatever it took to preserve the single currency.
This article appeared in the Finance & economics section of the print edition under the headline “Thrown for a loop”
Finance & economics June 25th 2022
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