Today, on Morning Macro we discuss the Italian pension system, yet another risk in the fragile Italian economy; and the psycholinguistics of central banks and stress tests.
In part 1, Sigrún spoke to Gustavo Baratta who trades bonds at Banca IMI (Intesa Sanpaolo). Baratta pointed out the weakness of the Italian pension system, funded by working people in an rapidly ageing population. Given the numbers of older workers reform won’t be easy. Further, populism and euro-phobia is growing among the electorate, another cause for concern.
In part 2 we bring the second part of Tom’s interview with John Hogan Morris, an academic in University College London’s geography department, who’s doing original work into the ‘performativity’ of central bank communications. Morris discussed stress testing and if the pass/fail nature of the way they are set up helps or hinders them in contributing to financial stability. And there is a not-so-hidden reference to Brexit at the end.
Music by longzijun