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The 3% deficit limit is macroeconomic nonsense, as demostrated by the fact that in 2009 because of the depth of the recession the average Eurozone deficit was well above that just form "automatic fiscal stabilizers" (the social safety net).

You cannot legislate recessions deeper than 3% out of existence.

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 Tue Feb 14th, 2012 at 06:38:57 PM EST
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