The differential between producer prices and consumer prices has reached exorbitant levels in the euro area, suggesting that the fight against inflation will be far more difficult than one thinks.
by Vito Lops
The European Central Bank has called an emergency meeting to try to stem the spread. This word, which technically stands for “differential”, has now fully entered the European financial lexicon as the difference in yields between the government bonds of the most indebted countries (Italy, Greece and Portugal above all) and the safest government bond of the euro area, the German Bund.
The other spread
An excessive increase in the “spread” risks causing serious problems for the financially more …