The European Union has already engaged in financial repression and will likely need to do so again: since the European debt crisis, Italian banks now hold Italian debt, Spanish banks hold Spanish debt, etc., rather than cross-holding, which was ordered by regulators as deliberate financial repression, and they'll need to intensify this as interest rates stay elevated and they face remilitarization costs.
factualpending
Speaker
Kenneth RogoffEvidence Quote
“Now the vast majority of the uh the Italian banks are holding all the Italian bank debt.”
Source
Kenneth Rogoff on Monetary Moves, Fiscal Gambits, and Classical Chess | Conversations with Tyler— Mercatus CenterCreated: 8/11/2026, 7:10:38 AM
My Notes
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