Can Italy survive the financial storm?
Gros, Daniel. If Italy is too big to fail and too big to save, how can it save itself? This column suggests a survival strategy. The Italian households should finance their own government by buying its debt, and the ECB should prevent a collapse of the Italian banking system. Πηγή: Voxeu πλήρες κείμενο
Chronic Confusion
Krugman, Paul. A quick note — I’ve seen several news reports in the past few days asserting that the structural problems of southern Europe have caused “chronic” trade deficits. Like the notion that all of the troubled countries were fiscally irresponsible, this is a morality-play falsehood that keeps being stated as a fact by reporters […]
Lessons from a century of large public debt reductions and build-ups
Abbas, Ali, Belhocine, Nazim, El-Ganainy, Asmaa & Horton, Mark. As policymakers continue to grapple with high debts and the troubles that come with them, this column looks at the lessons from data on public debt in 178 countries stretching back as far as 1880. It argues that when faced with an unsustainable debt burden, slow but steady adjustment […]