In the Keynesian model, the money government borrows to finance the additional deficit spending magically appears in the form of cash in exchange for government bonds.

FORBES: Doubling Down on the Payroll Tax Holiday Still Won't Create Jobs

On top of that, Italy will have to borrow more to finance its deficit, the gap between tax revenues and spending.

BBC: How ECB failed to reassure investors

Its government essentially balanced the budget in 2007 and 2008 after years of deficit spending, according to the International Institute of Finance.

WSJ: Cyprus Is Drowning in an EU Spoon