Zingales: ECB Taper Would Be a Problem for Italy

The video discusses the implications of a recent vote on the Democratic Party, highlighting the potential shift towards a more leftist stance and the rise of a Grillo government. It examines the European Central Bank's (ECB) role in stabilizing the Italian economy through quantitative easing (QE) and the challenges of tapering. The video also addresses the Italian banking crisis, emphasizing the need for EU intervention to prevent systemic failure. Finally, it compares the balance sheet expansions of central banks in Europe, the US, and Japan, noting the unique challenges faced by the ECB due to the lack of a federal government in Europe.

In what ways does the lack of a European government impact the economic policies in Europe compared to Japan?

What role does Mario Draghi play in the current economic situation in Europe?