There are two challenges on which Mario Draghi’s specific contribution to the exit from the economic crisis will be judged, well beyond the crumbs that are the savings in interest expense, of a maximum of 2 billion per year (0.1% of GDP), which appear on the horizon as the spread falls. They have to do respectively with the “how much”…
Economists Olivier Blanchard, Alvaro Leandro and Jeromin Zettelmeyer (BLZ) raised the bar of the debate on the EU rules on fiscal policy by asking for a significant Treaty change. It was ample time. Their paper has the pleasant feature that close to none others have when debating about the issue: simplicity, pragmatism and thinking «big». And when you have these three…