%0 Journal Article
%T Euro crisis or public debt crisis? With a remedy for the latter case
%A Mario Sarcinelli
%J PSL Quarterly Review
%D 2012
%I Associazione Paolo Sylos Labini
%X The European crisis did not originate with the Euro but with the excessive public debt of peripheral Eurozone countries. The ¡®great moderation¡¯ that had kept the euro sheltered from the storms proved a boon, because it granted the currency the status of a sound asset, but it was also a bane because it had led euro holders to believe that the euro area had implicitly reached such a degree of cohesion as to make a Greek or Italian government security almost as sound as a German one. If awareness of reality had dawned sooner, interest rates on the peripheral countries¡¯ public debt would have been considerably higher and government leaders might have woken up sooner from the dream of governing a country that could outlast any storm thanks to its ample private wealth, despite its massive public debt.
%K euro
%K crisis
%K public debt
%U http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10155/10044