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Comparing different approaches to Covid-19 containment | 56 comments (56 topical, editorial, 0 hidden)
Re: Varoufakis somewhat defends Hoekstra (none / 1)
Monetary financing of deficits is a funny thing. It seems it's OK when anglo-saxons do it.

The US has based its prosperity in the modern era on it. The Bank of England has no qualms about directly buying the UK government's debt (and the government wouldn't dream of telling them not to : that would be political interference...)

If poorer countries do it, it's inflationary and ruinous.

Non-Anglo mature economies can't do it because... it's verboten.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Wed Apr 29th, 2020 at 04:39:27 PM EST
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Re: Varoufakis somewhat defends Hoekstra (none / 1)
Speaking of which, Thomas Piketty has been making the rounds, presenting his proposal for a "coalition of the willing" for issuing joint debt, something that has been opposed by the "frugals" in the latest EU Council meetings. This could start by joint issuing between, say, Portugal, Spain, France and Italy.

More details (in English) in Politico.eu:

Thomas Piketty: Willing EU countries should spearhead fiscal union

He also said that opposition from Germany and the Netherlands should not discourage France, Italy and Spain from issuing joint debt, known as eurobonds or corona bonds, as a way to tackle the fallout from the coronavirus crisis.

"It is perfectly possible for two countries, or three and four countries -- France, Italy, Spain -- to create corona bonds," Piketty said about European answers to the crisis, and thus "mutualize interest [rates]."
[...]
Asked whether such a multispeed approach would not risk a break-up of the eurozone, Piketty said Europe had more to fear from rocketing interest rates in countries such as Italy -- which threatened to delay the recovery and propel the EU into another debt crisis -- than from asymmetrical fiscal or political integration.

by Bernard (bernard) on Wed Apr 29th, 2020 at 05:24:28 PM EST
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Comparing different approaches to Covid-19 containment | 56 comments (56 topical, 0 editorial, 0 hidden)
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