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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

ECB’s Hurley Says Euro Economy to Contract Next Year

Posted by WARREN MOSLER on December 24th, 2008

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Several months back, the eurozone national governments fell into ‘Ponzi’ as growth prospects went negative.

They now seem to be in that downward spiral of falling revenues, rising transfer payments, and rising credit default premiums.

Without a fiscal response to restore growth this will only get worse, and the National governements are, by treaty and by market dependence, in no position to enact a meaningful fiscal expansion.


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ECB’s Hurley Says Euro Economy to Contract Next Year
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2 Responses to “ECB’s Hurley Says Euro Economy to Contract Next Year”

  1. RSG Says:

    This was on Bloomberg this morning:
    “US banks may start to sell guaranteed bonds denominated in Asian currencies as supply outstrips capacity in dollar, euro, and pound markets; “Banks like Morgan Stanley and Goldman will have to tap Asian currencies because the potential supply is too big for dollars, euros and pounds to take on…It’s a perfect product for insurance companies in Asia. The bonds offer good yield pick-up, high credit ratings, good liquidity and no currency mismatch.” Bloomberg


  2. warren mosler Says:

    Interesting! Would tend to support the $ in the fx markets, seems.


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