It is well understood by everyone, including euro area sovereigns, that inflation requires that the European Central Bank increase official borrowing costs, according to Pablo de Ramon-Laca Clausen, General Director of the Tesoro and Financial Policy, Spain's sovereign debt issuer. In an interview with Econostream this week, de Ramon-Laca Clausen said that his and other European debt management offices had all prepared for the inevitable normalisation of monetary policy, and that debt sustainability was not currently a pronounced concern in any Eurozone member country. It was 'wise' on the part of the ECB to respond ... (full story)