In the weeks ahead, an additional support can come from the implementation at the national levels of the decisions agreed at the European level, including the recapitalization of banks and the possibility to make available, for an interim period and on appropriate commercial terms, governments’ guarantee, insurance, or other similar arrangements of new bank senior debt issuance.
FDI does not include investments in financial assets, such as investments in stock or bond markets. FDI is investment in tangible assets in the real sector. That means that money and capital flows through FDI are not very volatile. And it is the volatility in such flows that keeps any central banker awake at night. Let me digress here.