Italy’s best hope may again be the bond market’s favorite Italian: Mario Draghi. The nation’s mounting debt, coupled with a shrinking economy, is close to unsustainable, Ashoka Mody, a former deputy director at the International Monetary Fund, said yesterday in a telephone interview from New Delhi. “Unless there is an extraordinary fiscal effort or a growth recovery, the Italian debt must be regarded with a reasonable probability to be unsustainable today,” said Mody, now a visiting professor in international economic policy at the Woodrow Wilson School, Princeton University. Mody said Italian Prime Minister Matteo ... (full story)