Wednesday 11 June 2014, 4.00PM to 5.20pm
Speaker(s): Paul De Grauwe, London School of Economics - DERS and ReCSS Joint Specialist Seminar
We argue first that the Eurozone crisis has left a legacy of unsustainable government debt levels. These will continue to exert a deflationary dynamics in the Eurozone except if creditor nations are willing to contemplate a debt restructuring. Second, we argue that 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. We conclude that the Eurocrisis is not over.
Location: ARRC Auditorium (A/RC/014)
Admission: All welcome.