Euro area government finances An important development in financial markets was the marked increase in the net issuance of euro area government debt securities at the end of 2008 and early 2009, as shown in Chart 8. New debt issuance has mainly been in the form of short-term debt, partly because the steeper yield curve has made short-term financing relatively cheaper.
There is an income and substitution effect at work here. Quite likely, these policy actions boost demand in the world as a whole.