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With so much capacity, human and physical, lying idle, countries like Italy desperately need an economic-policy boost that goes beyond low interest rates.
Their appetite for risk has meant a buoyant start to the year for initial public offerings after a fallow 2003 (see article).There were certainly good reasons for this enthusiasm for equities, beyond low interest rates and heady growth.
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The 48-year-old warned of the risks that came with extending the ECB's low interest rate policy beyond next March: "The longer the low-interest phase continues, the bigger the risks of an ultra laid-back monetary policy.
Low interest rates have allowed consumers to spend beyond their means and have allowed investors to buy assets with borrowed money.
The low interest rate is unlikely to be extended to new loans beyond the end of the 2012-13 academic year.
4. Low interest rates.
Was it low interest rates?
Historically low interest rates have depressed income.
Low interest rates are here to stay.
Low interest rates have weakened its books.
But low interest rates have changed that.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com