Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Still, there are indirect ways to improve the business climate and increase capital investment. Tax breaks for investment, improved infrastructure, improved higher education, reduced bureaucracy and corruption, and so on. These are all things which lie under the control of the government.

And none of those were lacking in Spain. The crisis was the result of the blowup of private (corporate, not household!) debt which built up as a result of the pressure to reduce government debt as a fraction of GDP.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 09:13:10 AM EST
[ Parent ]

Others have rated this comment as follows:

JakeS 4

Display:

Occasional Series