Search Results for: debito pubblico

After the 2008 financial crisis, being a member of the Monetary Union was a guarantee in the case of current account imbalances or the repayment of debt. However, the crisis has brought the principle of national responsibility up again: the Monetary union becomes national just when there is more need for “federal” policies. The outcome of this mess is a mixture of policies, fiscal retrenchment and internal real devaluation, as potentially damaging on internal demand and the ability to repay the debt, as incapable of coping with the real problem of the Monetary Union as we know it: the external trade deficit and volatile capital flows.