tag:blogger.com,1999:blog-2098432983500045934.post2515386236302593074..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: ¿EZ Catastrophe? and ¿¿Generational Melodrama??The Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-14065833265224126662016-06-28T08:54:43.793-04:002016-06-28T08:54:43.793-04:00"I think the EU lacks fiscal union because it..."I think the EU lacks fiscal union because it couldn't convince the citizens of sovereign nation-states to give up national-level preferences in favor of superstate level preferences. People wanted to retail their national identities."<br /><br />Right, and the only way you can reliably express your sovereignty is by using your own currency. The problem with making everyone use the same currency and being under some entity (CB) that controls that currency, the person/people that make the rules/set monetary policy are using their value judgements in making the rules. They are saying what is important. So in the EU what you have is that German values or French values get more influence and if you dont run your economy/money system the way they think you should,( those lazy Greeks!) you are punished. <br /><br />I agree that it is better to have no union than a poorly put together union.<br />Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-65100067559309149622016-06-27T02:27:00.526-04:002016-06-27T02:27:00.526-04:00Hey Greg. I agree that the lack of fiscal union is...Hey Greg. I agree that the lack of fiscal union is largely what makes the EU unsustainable as a superstate.<br /><br />I think the EU lacks fiscal union because it couldn't convince the citizens of sovereign nation-states to give up national-level preferences in favor of superstate level preferences. People wanted to retail their national identities.<br /><br />So I don't think the solution is to impose fiscal union. I think the solution is to let union die. In the game of <i>Risk</i> you don't want anybody else to get an entire continent!<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-77983908818118932712016-06-26T16:27:10.529-04:002016-06-26T16:27:10.529-04:00Nice post Art
I would have voted for Brexit if I ...Nice post Art<br /><br />I would have voted for Brexit if I was there but I do think many xenophobic morons voted yes for the wrong reasons (and many voted no for the wrong reasons too)<br /><br />I do have a little different take on this however:<br /><br />"The result of the vote was political, not economic. It was the right choice, because the creation of the European Union was also political. The creation of the EU was a political solution to economic problems. It was sold to the voters as a solution to economic problems. It would make the economy better, the voters were told."<br /><br /><br />I think the primary flaw of the EU was not whether it was political or not (is anything NOT political) but that it was the wrong kind of political. It took 20 something countries that had their own currencies, beliefs about what they owed their citizens, levels of corruption etc and cobbled them together with no real supranational body outside of a European Central Bank to address macroeconomic issues. It was operating under the idea that if you have no borders, one currency and no trade restrictions and no pesky politicians to use fiscal policy everything will be fine. <br /><br />Whats additionally interesting is that the only country to try and ruin Europe in the past (Germany twice!) ends up as the place that most of this small band to technocrats listen to the most.<br /><br />They needed more fiscal union and less banker centric thinkingGreghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.com