Monetary union leads to too much fiscal discipline, research paper finds
A working paper prepared for a Bank of Greece conference in May this year provides empirical evidence that the creation of the eurozone made self-fulfilling liquidity crises and the imposition of intense austerity programmes possible.
In the paper, How much fiscal discipline in a monetary union?, first presented at the conference on the euro crisis in May, Paul de Grauwe and Yuemei Ji argue that a monetary union actually leads to too much fiscal discipline, rather than loosens fiscal discipline
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