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So, how do you propose infrastructure spending in the periphery would have happened after 1999 in the absence of "credit card spending"?

The issuance of sovereign debt seems reasonable, as does private equity (not "private equity" as in LBO variety, but equity as in the opposite of debt) investment if the latter were not forthcoming at a great enough scale.

So, the Growth and Stability pact and the Illegal State Aid rules are unreasonable since you propose that during the Euro era peripheral Europe should have issued sovereign debt to fund equity investments in new productive assets...

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 09:32:28 AM EST
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