Mises Daily
Author:
Philipp Bagus
Online Publish Date:
such as Germany. The lower interest rates coupled with an expansionary monetary policy by the ECB led to distortions in peripheral economies. The Greek government were partially caused by the EMU interest-rate convergence and the expansionary policies of the ECB. Naturally, people related to the bubble activities in these government resisted. Lastly and most importantly, fiscal harmonization eliminates competition. In Europe there still exists tax competition to attract citizens,