Deficit Owls | MMT Predicted That Euroland Will Fail @deficitowls5296 | Uploaded November 2016 | Updated October 2024, 3 hours ago.
Professor L. Randall Wray explaining that Modern Money Theorists predicted from the beginning that the European Monetary Union was doomed to fail. The reason is because there is a joint monetary policy but no joint fiscal policy. This means there is no recycling mechanism to compensate for trade imbalances between Euro regions, and no authority that can deficit spend Euros into existence in order to increase equity on the private sector balance sheet. This means that the EMU is both biased towards crisis, and structurally unable to adequately respond to crises.
Watch the whole talk here: youtube.com/watch?v=IZdZmu8mHTw&t=4521s
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Professor L. Randall Wray explaining that Modern Money Theorists predicted from the beginning that the European Monetary Union was doomed to fail. The reason is because there is a joint monetary policy but no joint fiscal policy. This means there is no recycling mechanism to compensate for trade imbalances between Euro regions, and no authority that can deficit spend Euros into existence in order to increase equity on the private sector balance sheet. This means that the EMU is both biased towards crisis, and structurally unable to adequately respond to crises.
Watch the whole talk here: youtube.com/watch?v=IZdZmu8mHTw&t=4521s
Follow Deficit Owls on Facebook and Twitter:
facebook.com/DeficitOwls
twitter.com/DeficitOwls
