Seems to me that the periphery of Europe (and the U.S.) recently had hot money flow in and out which cause budget problems and recession regardless of the state of the county's budget. Italy and Spain were not that bad.
Capital controls would have helped. They're not cost free but basically they're regulations. At least have a transaction tax to help build a rainy day slush fund.
Seems like the Washington Consensus IMF view helped create the world wide housing bubble /bond bubble which was disastrous.
Seems like the Washington Consensus IMF view helped create the world wide housing bubble /bond bubble which was disastrous.
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