For a way out of the crisis another path is possible, if we still keep the single currency but if we change regulations and economic policies. And introduce more democracy, also in the economy.
The need of the old “golden rule”, according which a country may finance public investment expenditures issuing bonds, while only current account expenditures have to be balanced.
The stagnation of the Italian economy over the last twenty years has a simple, straight-forward cause, which is the mirror opposite of the neoliberal narrative.
The OMT constituted a simple threat, by the ECB, that if need be the ECB would purchase as much short term Italian and Spanish debt, and offered Ireland a great opportunity to bring an official end to its official fallen state status.
The E.U. institutions are waging, in name of the “freedom of the market”, a sort of war against the Russian gas policy, because it does not make possible the resale of gas brought into Europe,but this has always been the indisputed rule of OPEC producers.
This EPI Working Paper is the introduction from Assessing the Job Polarization Explanation of Growing Wage Inequality, a draft paper presented at the “Inequality in America: ContendingTheories” panel at the 2013 annual meeting of the Allied Social Science Associations, Jan. 4–6, 2013. The completed, full paper will be available in a few weeks.
