McCarthy on the ECB/EU’s treatment of Ireland
“The perception that the costs of the European banking crisis are being borne disproportionately by Ireland is corrosive of public support for desirable policy reform.
Economist Paul de Grauwe has argued that the very design of the eurozone created high risks of sovereign default for non-core EU members who were rash enough to join the single currency.
It is patently clear that these risks were under-appreciated in Ireland but it is dispiriting to have to listen to lectures from ECB officials who appear to regard the European banking crisis as essentially a morality play about fiscal policy.”
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