1. Currency zones don’t solve the problem of payments imbalances.
2. The “structuralists” got it wrong.Levy Institute Policy Note
3. There is no French-German compromise on policy convergence.
4. Competition reduces inflation but does not produce growth and convergence.
5. A common currency does not eliminate the need
for internal adjustments.
6. The solution to the problem facing the eurozone is not increased political integration via more sovereign EU economic and political institutions.
Six Lessons From the Euro Crisis
Jan Kregel
(h/t Stephanie Kelton via Twitter)
3 comments:
"..the solution is to allow the new fiscal agent or
the Commission to run a fiscal deficit that would generate a surplus
in the highly indebted countries sufficient to allow them to
service and retire debt that the market will not refinance."
Perhaps there is no need for new agent. Just pay all costs of EU institutions with EKP money. And liberate nation states from EU realted taxes.
Interesting that Kregel focuses on something that Warren & Philip Arestis pointed out in 2004:
http://www.epicoalition.org/docs/Missing_piece.htm
@STF re: Missing piece
How central dollar purchases are better than fiscal deficit spending?
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