Veel peavoolu soppa

Can central banks avoid sovereign debt crises?

….The ECB would be powerless if there were a broad sovereign debt crisis across the Eurozone, in the same way that the Fed or Bank of Japan would be powerless to credibly avoid a self-fulfilling debt crisis in their countries. Overall, our conclusion is that the ability of the central bank to avert a debt self-fulfilling debt crisis is limited. While in theory there are policies that could make the public debt level sustainable, our quantitative analysis shows that central banks usually cannot credibly commit to such policies.

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About Kristjan

Defitsiidi terrorismi vastase pataljoni eriüksuslane (finantsignorantsuse vastu võitlemise osakond). Treening: MMT, postkeinsism, Tartu Ülikool Majandusteadus
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