El banco central Europeo compra bonos de Espana y Italia (CNN en Espanol)

Senior Fellow Liliana Rojas-Suarez was interviewed by CNN en Español on the European Central Bank’s (ECB) recent purchases of bonds from Italy and Spain. She notes that the size and duration of the intervention is important in determining its efficacy. Without a clear commitment by the ECB to act as a lender of last resort, the current monetary intervention will do little to resolve deeper economic problems within the European Union. Even more, a sustainable resolution of the crisis involves the restructuring of Italy and Spain’s bad debt in Europe’s peripheral countries.