Fighting the wrong enemy
de Grauwe, P.
(2010).
Fighting the wrong enemy.
VoxEU,
(2010).
Fighting the wrong enemy.
VoxEU,
A government debt crisis is ravaging the Eurozone. This column argues that its cause is misunderstood. The culprit is a profligate private banking sector that has put strain on otherwise manageable government finances. The increase in debt has reached crisis point because the Eurozone is a monetary union without being a political union – it has no fire brigade to put out the fire.