In a single currency world, a key credit test will be the proportion of a member state's income spent on interest payments. Markets will discipline excesses and require higher interest rates. Price stability - with lower real interest rates - will cause a remarkable leap in credit quality.
In a single currency world, a key credit test will be the proportion of a member state's income spent on interest payments. Markets will discipline excesses and require higher interest rates. Price stability - with lower real interest rates - will cause a remarkable leap in credit quality.
© Graham Bishop
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The EC's Public Debt Disease in EMU.pdf
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