Question
Q1. According to the graph of Italy Long term interest rate, we can see starting from the 2011, Italy long term interest rate peaks at
Q1. According to the graph of Italy Long term interest rate, we can see starting from the 2011, Italy long term interest rate peaks at 7% at Nov 2011. Italy increases in Interest rate due to the uncertainty of fiscal reforms at that time. How can we explain after that period it shows the decreasing trend in the interest rate until the early 2015. How can we explain this decreasing Long term interest rate with using macroeconomic variables like inflation rate, debt, exchange rate etc. what policy (monetary or fiscal policy) that Monetary authority use in this case? (please put the reference if it is available)
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