Luis Garicano on Debt and the Euro

Garicano has developed an extensive academic career at the University of Chicago, where he attained the rank of full professor of Economics and Strategy, and the London School of Economics, where he has been Full Professor of Economics and Strategy and head of the Managerial Economics and Strategy Group.

Timestamps:
[0:00] Introductory Remarks
[9:35] ECB Policy and goals
[15:50] Construction tested during the Euro crisis
[21:02] 2015: QE without breaking Treaty constraints?
[23:10] 2020: Pandemic
[32:54] How do we exit?
[43:27] Current proposals and steps forward
[56:13] Conclusions

[English_Dawn]

Have a good Christmas and compliments of the Season. Luis Garicano is correct. As it currently stands it is not looking good for the EU. How do you get all 27 countries (not all are Eurozone members) to
sing from the same hymn-sheet? Many with different economies and different-sized economies. The EU was good at the time, post second-world war but has fundamental flaws. Jean Monnet founded it as a technocracy. He didn't submit himself to any public vote. Only 1 of the 3 branches, the Parliament, is democratic and that only tenuously. With 1 Member of the European Parliament for approx. 700, 000 voters. Turnout is low with many voters voting on national issues rather than European. The other two branches the Council and the Commission are appointed and not elected by the public.

Britain dodged a real bullet ceding from the EU. "Black Wednesday" or "White Wednesday" as the Eurosceptics called it was seismic.

There is no political independance without financial independance. Who would want to willingly cede financial independance to Frankfurt?

There are two strains, a Europe of nation states or an ever closer federal EU. There is little stomach for the latter. There may however be a two-speed EU. Two orbits. Those willing to give up their national sovereignty and those who prefer to retain national identity.

Germany doesn't want a transfer union where it would be legally obliged to financially pay off debts of feckless states. Italy as you infer has been told by the technocrats in Brussels to reduce the amount of cash available. (Partly to reduce the opportunity for fraud). However a lot of Italy's economy are small businessses were cash is crucial. Prime Minister Giorgia Meloni will push for the current arrangements.

As for the European Army its probably a fantasy. N.A.T.O. is the only game in town and it would be a duplication for those states that are members, a waste of resources.
Pushing 27 entities like trying to herd cats.

[albertbarelyazoomer]

comparing eurozone gdp vs US gdp when comparing fed and ecb is disingenuous, the ECB in all pratical terms does monetairy policy for the entire european continent and the periphery. In my view this makes it more apples to apples if you compare the continents instead of the the pure eurozone.