In conducting monetary policy, the European Central Bank (ECB) must balance the needs of euro-area countries with

Question:

In conducting monetary policy, the European Central Bank (ECB) must balance the needs of euro-area countries with differing economic conditions. Plot since 1990 the yield spread between government bonds in Italy (FRED code: INTGSBITM193N) and Germany (FRED code: INTGSBDEM193N), along with the yield spread between government bonds in Spain (FRED code: INTGSBES193N) and Germany. Discuss the yield spreads after 2008 and explain how they reflect policy challenges for the ECB.