Lars P. Syll — Wynne Godley on the euro project

If Europe is not to have a full-scale budget of its own under the new arrangements it will still have, by default, a fiscal stance of its own made up of the individual budgets of component states. The danger, then, is that the budgetary restraint to which governments are individually committed will impart a disinflationary bias that locks Europe as a whole into a depression it is powerless to lift.

Lars P. Syll’s Blog Wynne Godley on the euro project Lars P. Syll | Professor, Malmo University