Wednesday, April 1, 2015

Dirk Ehnts — Open letter in the FT: inject newly created money directly into the real economy

The problem is: the euro zone has been constructed so that there is no spender-of-last-resort. The ECB is not allowed to directly finance governments, and hence all government can go bankrupt. Even the German government bonds are not risk-free. It is time to rethink the fiscal-monetary nexus of the euro zone.
How to undermine an entire geopolitical and economic region from within in just one treaty. Great work, folks.

econoblog 101
Open letter in the FT: inject newly created money directly into the real economy
Dirk Ehnts | Berlin School for Economics and Law

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