We recently had the pleasure of having economist Paul Krugman in the Business Insider office for an interview (see parts I, II, and III), so naturally we asked him to contribute to our feature on The Most Important Charts In The World.
His answer: The Spanish 10-year bond yield. He says it’s the first chart he looks at every day when he wakes up, as it’s one of the key gauges for Euro crisis risk.
In our interview, Krugman said that one of two “impossible” scenarios will unfold in Europe. Either the ECB will aggressively monetise the debt and inflate (which Germany would never accept) or the Euro will completely collapse (which Germany will never accept). It’s a 50/50 proposition.