It’s time for central banks to prepare financial markets to regain more influence over longer-term interest rates, braking the move toward fiscal dominance and alleviating the threat of another economic collapse. Major central banks should envisage shifting gear – sensitively and coordinated with overall economic developments – away from trying to hold down long-term bond yields and towards monetary normalisation for when the Covid-19 crisis is over. In Europe, what happens in Italy will be crucial. Mario Draghi, Italy’s new prime minister, played a pivotal role as European Central Bank president in pushing the ECB ... (full story)