9July 2012, hours before a summit of eurozone finance ministers: comes the terrible headline: Spanish borrowing costs rise ahead of euro summit
Great. Should we worry or what? In June, Moody’s had cut Spain’s credit ratings to Baa3, just one notch above junk.
Why is it important for a country to protect its credit ratings?
In theory, credit ratings should be directly linked to interest rates on public debt. Continue reading