What went wrong? From the Lisbon's agenda to the awful combination of monetary stability and "structural reforms”: The self-defeating ideology of the Frankfurt-Brussels axis.
A combination of factors and mistakes has transormed a minor national crisis to a near-catastrophe spreading to the whole of Europe.The people on whom the burden of Greek adjustment unfairly falls today have every reason to show their dissent.
New American Foundation - Economic Growth Policy Paper: "The troumbling economics and politics of payng Interest on bank reserves" by Thomas Palley (April 2010).
The corruption of credit-rating agencies was at the heart of the financial collapse. So far, Congress has not had the nerve to pursue fundamental reform.
The crisis calls for counter policies all of Europe. There would be for many years ahead some countries with structural deficits (‘catching up’ countries) and countries with a structural surplus (the more mature economies). It is difficult to understand that a European Monetary Fund was not established contemporary with the EMU.
As governments everywhere struggle with cutting deficits without hammering the recovery from the financial crisis, a new book argues that Keynes has had the solution for a long time.
The reform addresses the first side of the triangle of the crisis, insofar as the number of uninsured will be drastically reduced, but the problems of inequality before the illness and of costs remain away from a solution.
The institutional arrangements behind the euro have distorted the monetary - fiscal balance, creating deflationary central bank dominance.Its design embeds neo-liberal monetary theory which in many regards rests on the same economic principles as the gold standard.
