Thursday, July 14, 2016

Financing vs. Spending Unions: How To Remedy The Euro Zone’s Original Sin

By Thomas Palley

In economic policy, timing isn't everything, it's the only thing. The euro zone crisis has been evolving for over seven years, making it difficult to time policy proposals. Now, the shock of Brexit has created a definitive political opportunity for reforming rather than patching the euro. With that in mind, I would like to revive an earlier mistimed proposal for a euro zone "financing union." The proposal contrasts with others that emphasize "spending unions." But first some preliminaries.

Read full text here.

No comments:

Post a Comment

Rethinking the determination and long-run evolution of income distribution

New paper by Thomas Palley. From the abstract: This paper presents a theory and model of long-run cycles in income inequality. The model exp...