Krugman om Rubicon och The Printing Press Mystery
Jag tycker jag får mer vatten på min kvarn gällande min kanske
uppfinna-hjulet-på-nytt-insikt om att "Om man har en sedelpress går man inte i konkurs"
John Plender at the FT seems mystified by something that has become obvious lately:
Bond vigilantes are only going after countries that no longer have their own currencies.
Part of the answer is that countries on the euro are stuck with a severe competitiveness problem that can only be resolved with grinding deflation, making their debt problems worse.
On top of that, however, is the proposition that countries without a printing press are subject to self-fulfilling crises in a way that nations that still have a currency of their own are not.
The point is that fears of default, by driving up interest costs, can themselves trigger default
Read more here
John Plender at the FT seems mystified by something that has become obvious lately:
Bond vigilantes are only going after countries that no longer have their own currencies.
Part of the answer is that countries on the euro are stuck with a severe competitiveness problem that can only be resolved with grinding deflation, making their debt problems worse.
On top of that, however, is the proposition that countries without a printing press are subject to self-fulfilling crises in a way that nations that still have a currency of their own are not.
The point is that fears of default, by driving up interest costs, can themselves trigger default
Read more here
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