The Collapse Of Italy’s Money Supply

Tyler Cowen brings us a chart that’s difficult to explain in terms of la dolce vita:

The idea of central banking is that you have a central bank so that things like this don’t happen. And the thing about this death spiral is that there’s potentially no end to it. If people think the ECB won’t rescue a country from panics and bank runs, then Finland and Austria and the Netherlands are just as vulnerable as Spain and Portugal and Italy.