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Tag: Money

Europe’s Hamiltonian moment… Again

Posted by Jamel SAADAOUI | 28 Apr 2020 | macroeconomy, Monetary economy | 0 |

In these dark times of ’Coronacoma’ for the World Economy, the European Monetary Union is on the brink…Again. This time, it could be truly different. Countries opposed to any kind of debt mutualization properly ordered hinder de facto the achievement of a federal leap that it is desperately needed to complete the monetary union. Without this giant leap, there are real risks of implosion for the eurozone and, even, the whole EU. This brief note tries to explain why the US historical experience could be inspiring for Europeans in a situation where the concept of radical uncertainty is especially...

Joint liability bonds for a joint European defense against the pandemic

Posted by Aristomene VAROUDAKIS | 6 Apr 2020 | Blog, Foreign trade, International Economics, macroeconomy, Monetary economy | 0 |

The problem Mitigating the impact of the Covid-19 pandemic will require a significant increase in public spending to rescue sinking economies and further shield health systems. At the same time, tax revenues will be collapsing as long as economic activity remains suppressed. Budget deficits will inevitably swell, leading to soaring public debt. Eurozone countries – such as Italy, Greece, Portugal and Spain – that have already suffered the effects of the sovereign debt crisis – and their debt remains high – will be hit particularly hard. The increase in debt will call into question its sustainability, posing the risk...