The "growth and stability pact"
One of the greatest problems with a common currency area is that it could leave constituent regions exposed to assymetric shocks. To the lay person that means, in effect, an even that pushes one or more countries into recession, but not others.
The "growth and stability pact" in general and the more recent "stability measures" announced by the European Commission force those countries mired in the worst recessions to impose the most pro-cyclical (recession exacerbating) fiscal policies.
How that enhances prospects for either growth or stability, I don't think I am clever enough to understand.
But. The big news is that we knew this a long long time ago...
....sigh...
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