All Hail Mario Draghi: The Spanish Bank Run is Over for Now

The Spanish bank run caused by redenomination risk is over. And Spanish bond yields are now back to around the 5% level today. Apparently, the ECB's monetisation scheme has worked - and without Spain's having entered a Troika program yet too. That tells you how important currency sovereignty is. Let me spell out what's happening here and why with a few thoughts on how things will proceed going forward.
First, on the bank run front, Spain's central bank, the Bank of Spain, reported today that de...


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