If all the other countries were to leave their fiscal policy unchanged, the additional debts of one country would have the effect of increasing the overall demand for loans, and with it the level of capital market interest rates in the euro area, only slightly.
Thank you for the opportunity to be here at the Zell/Lurie Real Estate Center Fall Members’ Meeting. Your founding director, Peter Linneman, and I were graduate students together at the University of Chicago – a long time ago – and so I am especially delighted to be part of your program today.