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Market tolerance for public debt is lower in a monetary union, as has become apparent since 2010.

Rising risk premia undermine the expansionary effect of fiscal deficits even during recessions.

The Eurozone economy’s Coming Downturn
Project  Syndicate 27 November 2018

Lucrezia Reichlin, a former director of research at the European Central Bank, is Professor of Economics at the London Business School.

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