The debt levels for all Eurozone countries would be much lower at the start of the crisis, with most countries well below the 60% cap.
The deficit levels, with the budget balance coming down from a higher level, would have stayed below 3% deficit, or would have exceeded it by much less.
In addition, a less loose fiscal policy in 'good times' would have cooled down the economies and likely prevented certain epic asset bubbles from growing so much. The brainless should not be in banking -- Willem Buiter
Migeru:
In addition, a less loose fiscal policy in 'good times' would have cooled down the economies and likely prevented certain epic asset bubbles from growing so much.
But the economy as a whole wasn't really overheating before the crash. Wait this is important. Someone is wrong on the Internet.
Not really that important. We're only talking in these terms because of the Growth and Stability (suicide) Pact. The brainless should not be in banking -- Willem Buiter
