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Re:Pooling and Sharing of wealth make everyone's wealth grow... by RandomLensman on Saturday September 02, 2023 @04:52AM (#37359661)
It is now pretty much accepted that the European reaction to the financial crisis was massively worse than the American. A big and expensive error can have long lasting effects - perhaps no need for beyond means, digital etc. but that is rather a result not a cause.
Re:Pooling and Sharing of wealth make everyone's wealth grow... by Detrytus on Saturday September 02, 2023 @06:15AM (#37360117)
The big and bad error that caused European bad reaction to the financial crisis was the introduction of common currency. Eurozone does not form Optimum Currency Area, under Mundell's definition (https://en.wikipedia.org/wiki/Optimum_currency_area), so any significant crisis is made worse by "asymmetric shocks".
Re:Pooling and Sharing of wealth make everyone's wealth grow... by RandomLensman on Saturday September 02, 2023 @06:19AM (#37360142)
I disagree with that, the policy errors where far more direct (and well analyzed). For example: poor bank recapitalisation, wrong incentives about balance optimization, ECB even raising rates in the beginning of the GFC