Is the Eurocrisis over?
De Grauwe shows that the Eurozone crisis has left a legacy of unsustainable government debt levels. These will continue to exert a deflationary dynamics in the Eurozone and will lead to the risk of future crises.
Fiscal policies should be liberated from economic fallacies and misdiagnosis of the crisis. The institutional innovations since the start of the debt crisis fall short of what is needed to solve the design failures of the Eurozone.
In addition, they are not sustainable, mainly because they have led to a situation where bureaucratic institutions have been vested with more responsibilities without a concomitant increase in the democratic legitimacy of these institutions.
About the Lecturer
Prof. Paul De Grauw, Professor in European Political Economy, London School of Economics
This lecture is organized in cooperation with the School of Business and Economics. The Joan Muysken lecture has been named after Joan Muysken, SBE’s first professor in macroeconomics (1984-2014) and who was the founding father of the department of Economics of SBE.