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> High public debt in your own currency supported by your central bank it's not problematic. Yes but the Euro is not an own currency of any single country whic
by mitjam 4y ago
> High public debt in your own currency supported by your central bank it's not problematic.
Yes but the Euro is not an own currency of any single country which is why a country in Eurozone can potentially go bancrupt. this led to players betting against Italy in the last Euro crisis until the „whatever it takes“ bailout guarantee. Challenge is there now is unbounded spending across Euro countries with no end in sight. It all just feels like a race of who can spend faster until the party is over.
- RobertoG 4y ago>>"is there now is unbounded spending across Euro countries with no end in sight" That's simply not true. Just look to the data. If it was true, you would see grow in those countries. And also look to the difference in economic indicators between the countries that are in the € and those that are not. Being in the Euro is not so good deal like they try to sell us. The "whatever it takes" didn't saved Italy or the PIGS, it saved the €. And it was a direct monetization of public debt that it's against the treaties (at least in spirit). Think about it, in order to save the €, the ECB had to go against the treaties that define the Euro. If that don't tell you that the problem is the treaties and not in specific countries, nothing will do.