Europe, and in particular Spain, are facing the long-term inconsistencies of socialdemocratic ideas. On the one side, socialdemocracies need young and dynamic societies with a large share of net fiscal contributors to be economically viable. On the other, socialdemocratic regimes tend to impose short-term regulations and intervention (e.g., house building constraints) that end killing people's desire to have children.
Luis is on to something when he talks about the back door fiscal union emerging. Of course this has never really been tested in the sense that borrowing rates haven’t spiked in Germany because of the need to fund the fiscal deficit in Greece. Let’s see what happens in the future. One thing which seems clear though looking at the overall fiscal picture - 🇺🇦 isn’t joining 🇪🇺 in our lifetimes.
Would be interesting to compare real interest rates for the “students” vs the “teachers”. I think the ability to borrow from abroad in your own currency is a significant factor in why debt fears in 🇪🇺🇺🇸🇬🇧 are overblown.
Europe, and in particular Spain, are facing the long-term inconsistencies of socialdemocratic ideas. On the one side, socialdemocracies need young and dynamic societies with a large share of net fiscal contributors to be economically viable. On the other, socialdemocratic regimes tend to impose short-term regulations and intervention (e.g., house building constraints) that end killing people's desire to have children.
Debt to GDP doesn’t really matter. As long the debt is domestic it’s fine look at japan . Central banks control interest rates not private investors
Luis is on to something when he talks about the back door fiscal union emerging. Of course this has never really been tested in the sense that borrowing rates haven’t spiked in Germany because of the need to fund the fiscal deficit in Greece. Let’s see what happens in the future. One thing which seems clear though looking at the overall fiscal picture - 🇺🇦 isn’t joining 🇪🇺 in our lifetimes.
Would be interesting to compare real interest rates for the “students” vs the “teachers”. I think the ability to borrow from abroad in your own currency is a significant factor in why debt fears in 🇪🇺🇺🇸🇬🇧 are overblown.