I suspect the real test will come during a slowdown of the euro economy. Debt markets will not permit countercyclical deficits by the member nations. Just like the States in the US, euro nations will be forced by the debt markets to run procyclical fiscal policy during a slowdown, cutting spending as revenues fall. And the ECB, the only entity technically capable of countercyclical fiscal, is not permitted to do so.
Let's hope the recovery continues.
.
Prayer may help more-). Amen!
Paul Paul Davidson Holly Chair of Excellence in Political Economy University of Tennessee SMC523 Knoxville, Tennessee 37996-0550 office phone# (423)974-4221 fax# (423)974-4601 home phone # (423)573-9160 email: pdavidson@xxxxxxx http://econ.bus.utk.edu/Davidson.html
- Euro-Dollar Parity, ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú Thu 10 Feb 2000, 17:16 GMT
- Re: Euro-Dollar Parity, Sven R Larson Fri 11 Feb 2000, 09:03 GMT
- Re: Euro-Dollar Parity, Warren Mosler Fri 18 Feb 2000, 17:17 GMT
- Re: Euro-Dollar Parity, ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú Fri 18 Feb 2000, 21:03 GMT
- Re: Euro-Dollar Parity, Paul Davidson Fri 18 Feb 2000, 22:37 GMT
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- Sv: Euro-Dollar Parity, Hugh Whinfrey Sat 19 Feb 2000, 08:33 GMT
- Re: Sv: Euro-Dollar Parity, ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú Sun 20 Feb 2000, 05:40 GMT
- Sv: Euro-Dollar Parity, Hugh Whinfrey Tue 22 Feb 2000, 19:46 GMT
- Re: Sv: Euro-Dollar Parity, ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú Tue 22 Feb 2000, 23:28 GMT