The difference between the two money’s worth ratios is typically considered the most reliable proxy for adverse selection costs. For example, Mitchell et al (1999) provide estimates for the United States respectively equal to 81 and 92 percent. Comparable estimates for Italy are 77 and 87 percent (Guazzarotti and Tommasino, 2008).
Given our limited role in influencing the global developments, the policy focus has to be on improving domestic macroeconomic fundamentals so as to minimize the impact of such spillovers.