>
> It is possible under this arrangement for the ECB to
> "bounce government
> cheques" that were
> issued by a "rogue" (to use terminology seemingly in
> vogue at present)
> states who were intent
> on pursuing full employment via appropriate levels
> of net government spending.
Even worse than that.
The way I read it the ecb is required to bounce
member govt checks if their is insufficient funds
in their account under the 'no bailout' provisions.
>
> The possibility refers to there being little the
> Treasury in that state
> could do.
>
> It is an example of a voluntary restraint being
> imposed on states by
> themselves (by entering
> the agreement) to curb the power they hold as a
> result of being the
> monopoly issuers of
> their own currency. why they would do it is another
> question. totally
> irrational in fact.
economically irrational, but politically it was the
only
path to unity!
warren
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Received on Tue Feb 11 06:44:28 2003
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