by Geoffrey Wood

Germany keeps being told that it must pay up to save the euro. But how much can Germany pay? No one seems to have thought about that, but there is already concern about the possible size of the bill. German bond yields rose soon after news of the Spanish bailout, even before it was announced where the money was going to come from. (And it was a bailout for Spain, regardless of what Spain’s prime minister says. If I borrow money and then lend it to someone else, I’ve still borrowed it.)

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