Beyond the bazooka of eurozone bailouts


At this point, we should hear from a German macroeconomist about the unacceptability of such a cheap ploy for the disguised monetary financing of deficits.

Before we do, though, let’s consider the deal that Ireland just did with the winding up of the Anglo Irish Bank, and the conversion of the old, much-hated promissory notes that were financed using a temporary ELA facility provided by the Central Bank of Ireland. The promissory notes, which were short-term pieces of paper, were swapped by the Irish government and the central bank into government bonds that will not mature until at least 2038. Eventually, they are supposed to be sold to private holders.

Beyond the bazooka of eurozone bailouts –

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