EMU member states are not “sovereign”

Just read an analysis of Stratfor on the European situation that was, as usual spot-on, in describing the goings-on, the points of contention, and the potential effects if the current policies are continued. Stratfor is firmly rooted in the current economic paradigm, however, and reading this I realized again the big mistake again that many English commentaries and analyses make. They call it a “sovereign debt crisis” when indeed neither of the EMU member states are sovereign in terms of currency.

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This entry was posted in austerity, debt, economic policy, eurocrisis, public debt. Bookmark the permalink.

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