Eurozone Design Problem: One Central Bank, Many Fiscal Policies | Warren Mosler

Donate: 🙏 https://www.buymeacoffee.com/slobodnipoI Warren Mosler explains why the eurozone is structurally different from the United States. In the U.S., federal deficit spending is centralized: the federal government and the Federal Reserve operate at the top of the system, while individual states are currency users and generally must balance their budgets. The eurozone works differently. Member states run their own fiscal policies and carry their own debts, while the European Central Bank issues the currency. Mosler argues this structure nearly broke down in 2012 — until the ECB effectively guaranteed member-state debt through the famous “whatever it takes” approach. His conclusion is not that the euro system is impossible. It is that the system must be understood and managed correctly. Otherwise, countries may impose unnecessary limits on themselves and create unemployment through bad policy. Full episode: https://www.youtube.com/watch?v=nG4mxrWQ7T0&list=PLJTy3oXCzHShsVuJ-zfiGnx96nuR-BNWB&index=1 WEB: slobodnipodcast.hr