Dollars, euros and debt: how we got into the fiscal crisis and how we get out of it

Abstract

Table of Contents 1. Introduction 2. The Crisis and the Calls for Policy Responses 3. Central Banks as Lenders of Last Resort 4. Pressures on Germany to Help Save the Euro 5. The Fiscal Situation before the Crisis 6. The EMU Rules and Goodhart Law 7. On Public Debts, Fiscal Deficits and The Maastricht Rules 8. Fiscal Policy during the Recent Recession 9. Fiscal Policy and the Fiction of Fungible Labor 10. The EMU and the USA: What Are the Differences? 11. Trade Balances within Monetary Unions 12. Central Banks' Payment Systems within Monetary Unions 13. Strategies to Get out of the Fiscal Crises 14. Is there a Fundamental Law of Public Expenditure Growth? 15. Concluding Remarks