The Role of Institutional and Political Factors in the European Debt Crisis Carlo Panico and Francesco Purificato

The costs of uncertainty in the coordination process and in the ECB’s response to speculative attacks have been huge for the European economies and the citizens. Yet, inspite of the unsatisfactory outcomes, the European Governments and authorities, trapped by the defensive approach, still propose punitive measures similar to those that the Washington Consensus and the IMF imposed on Latin American countries in the 1980s and the 1990s.

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