> What is a mess about the Eurozone and reckless about the ECB?
Without opening the article someone gave has a link I can name a few...
Not respecting the promises to go down hard on countries not respecting a yearly public deficit of more than 3% of their GDP (France is nearly at 6% since two years and going down the drain).
Having a common currency created by ideologues, not economists, and having that common currency shared between countries that do not have the same fiscal policies.
Having a shitload of ultra indebted countries in the eurozone.
Having one of the country of the eurozone, even though the Euro is one of the youngest currency of the world (only 27 years old or so) who already frigging (partially) defaulted on its public debt.
(not I just read TFA)
Ah yup: the ECB heavily manipulating the various countries' public bond rates.
My bet is that the euro shall be one of the shortest lived currency ever. It was made by ideologues and is only loved by ideologues. Economically it makes zero sense to have a common currency between country that have both different fiscal policies and different levels of public debt.
Now of course the ideologues are going to argue that the EU should have a unique fiscal policy (with of course ultra high taxes for everybody, except EU public servants who pay the lowest tax rates in the entire EU btw) and a common public debt.
https://robinjbrooks.substack.com/p/the-principal-agent-prob...
Able to summarize what you mean vs just a link?
save people a click:
> The incentive structure at the ECB has become distorted and favors high-debt countries [that underperform or are risky]
> What is a mess about the Eurozone and reckless about the ECB?
Without opening the article someone gave has a link I can name a few...
Not respecting the promises to go down hard on countries not respecting a yearly public deficit of more than 3% of their GDP (France is nearly at 6% since two years and going down the drain).
Having a common currency created by ideologues, not economists, and having that common currency shared between countries that do not have the same fiscal policies.
Having a shitload of ultra indebted countries in the eurozone.
Having one of the country of the eurozone, even though the Euro is one of the youngest currency of the world (only 27 years old or so) who already frigging (partially) defaulted on its public debt.
(not I just read TFA)
Ah yup: the ECB heavily manipulating the various countries' public bond rates.
My bet is that the euro shall be one of the shortest lived currency ever. It was made by ideologues and is only loved by ideologues. Economically it makes zero sense to have a common currency between country that have both different fiscal policies and different levels of public debt.
Now of course the ideologues are going to argue that the EU should have a unique fiscal policy (with of course ultra high taxes for everybody, except EU public servants who pay the lowest tax rates in the entire EU btw) and a common public debt.
Not gonna work, komrade.