By Darren Williams and John Taylor
COVID-19 is catapulting the world into a new era of central banking - helping governments finance growing debt by capping bond yields near zero. Despite some hurdles, we're confident that this will play out just as powerfully in the euro area as elsewhere. That's why we remain constructive on peripheral euro-area bond markets.
"Joined at the Hip" Works in Europe Too
In this new era, monetary and fiscal policy are closely coordinated - "joined at the hip." But the complex way the EU is structured can create obstacles to