How to Create a Depression
Feldstein, Martin. European political leaders may be about to agree to a fiscal plan which, if implemented, could push Europe into a major depression. To understand why, it is useful to compare how European countries responded to downturns in demand before and after they adopted the euro. Πηγή: Project Syndicate πλήρες κείμενο
Behind the ECB’s Wall of Money
Marzinottο, Benedicta. Throughout the crisis period, the European Central Bank’s behavior has been conditioned by the tension between what it can do and what it is allowed to do. The ECB is the only institution in the European Union that is able to provide unlimited funding to governments, but its governing statute prohibits government bailouts. […]
The unexplained part of public debt
Campos, Camila, Jaimovich, Dany & Panizza, Ugo. How do countries get into debt? And how does this debt rise so fast? The short answer may be obvious, but this column shows that the longer answer certainly isn’t. The answer to the question “How do countries get into debt?” seems trivial. The stock of debt is equal to the […]