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It seems to me that if the entire Eurozone was subject to the same monetary policy by the ECB, it leaves a wonderful base for comparison. In other words, we ca
by SovietDissident 11y ago
It seems to me that if the entire Eurozone was subject to the same monetary policy by the ECB, it leaves a wonderful base for comparison. In other words, we can forget about monetary policy in our analysis and compare the relative health of other economies in the Eurozone based on their governments' fiscal policies and fundamental economic productiveness. Greece, Spain, and Portugal fail the test.
- cynicalkane 11y agoThe entire motivation behind monetary economics is that there doesn't exist a "baseline economy" independent of monetary policy. This was the primary argument against the Euro. Developing economies are hurt more in recessions, and benefit more from widely varying monetary policy. This is true no matter how "good" or "bad" a country is, even if the "badness" of a country was justification for economically punishing its citizens in the first place (it isn't).