nov 302010
OK, folks, this is getting really serious. Spain is bad enough, but Italy …
Italy has puzzled me a bit. On one side, it has a lot of debt (net 99 percent of GDP), and if you look at prices and wages it looks almost as overvalued as Spain. On the other side, Italy’s deficit isn’t nearly as bad (5.1 percent in 2010, sez the IMF), and the economy doesn’t seem to be suffering as much as you’d expect.
But now Italy’s under pressure too.
Bron: Paul Krugman Blog