And now… Managing the transition from the emergent bad equilibrium of high debt, high perceived credit risk and risk aversion, and high and volatile yield spreads to a position where confidence has been sufficiently restored is the task of the policy and institutional innovations that form the “what’s new” of euro 2.0.
To some extent the new institutions, policies and instruments are designed for a transitional period and to some extent as the framework in which the system is to settle down.