But they were brothers nevertheless and stopped hostilities briefly to famously play football between the trenches (until threatened with court martial by their 'superiors').

i believe there is an option for 'audio' under the video where the transcript option is

Right not write

Hi Carlos - I am using a broad simplification. Here's a bit more detail, but the boundaries are constantly changing! The capital key determines how much capital each country should contribute towards the ECB, which is then used to work out how much of each country’s bonds should be purchased. For Germany, the capital key is about 25% of ECB capital when non eurozone countries are excluded. Malta and Cyprus have a tiny contribution. Capital keys are worked out based on GDP and population. Monthly bond purchases should be proportional to the capital key constraint. Bond buying is also then subject to restriction on maturity, yield and credit rating (Greek bonds were excluded for a long time). Movements in yield have made calculations particularly tricky (moving deep into negative territory in some cases). In addition, there are position limits of 33% of the value of each individual bond issue and of all bonds in circulation issued by any one member state. Given that there are so many moving parts, the capital key is really a rough guide for bond purchase volumes and the 33% position limit is a slightly more serious constraint. The package announced early in this crisis was not subject to all these constraints, but is considered to be finite (whereas the current QE program is theoretically infinite, but subject to numerous constraints).

Roger, thanks for the excellent description of the capital keys issue!

It is not only "total debt to GDP". The difference between Italy and Swiss is the corruption level. Investors instinctively perceive this. hence real capital leaves Italy

That's a genius idea! That will certainly get the public on board, but essentially means moving towards fascism. The inbreeding landscape in Europe going forward seems to be very political and agenda driven. The rise of "green" investment vehicles is astounding and seems the fundamentals really won't matter as much in the future.

I meant investing, not inbreeding!

Hi Remmelt - this avenue will be pursued - cash rich tech companies will be viewed with envious eyes by many governments, not just in Europe. The Frugal Four will also want to see some structural reforms included in any EU wide deal, especially if they are disbursed as grants.

and limit to 20 min max, please?

Hi Michael. This is the sticking point. The idea unveiled by Merkel and Macron is that these are non refundable grants (i.e. debt mutualization) and this is why it was a shock that Merkel agreed, having resisted for so many years. The Frugal Four have rejected this - they want loans. This is the debate to watch and the potential Rubicon to be crossed

seems Roger paid up ;). though much to be said for paper in hand

It is downloadable here for free: https://www.google.com/books/edition/Financial_Market_History_Reflections_on/RC0dDgAAQBAJ?hl=en&gbpv=1&printsec=frontcover