The problem is: the euro zone has been constructed so that there is no spender-of-last-resort. The ECB is not allowed to directly finance governments, and hence all government can go bankrupt. Even the German government bonds are not risk-free. It is time to rethink the fiscal-monetary nexus of the euro zone.How to undermine an entire geopolitical and economic region from within in just one treaty. Great work, folks.
econoblog 101
Open letter in the FT: inject newly created money directly into the real economy
Dirk Ehnts | Berlin School for Economics and Law
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