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Chapter 14

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Fiscal policy and sovereign debt crisis in the EU

Fiscal policy and sovereign debt crisis in the EU. Francesco Passarelli University of Teramo and Bocconi University. The free-rider problem. In a currency union governments have strong incentives to bail out a country that borrows excessively Two ways to solve this:

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Public deficits - PowerPoint PPT Presentation

Chapter 14

Fiscal policy and sovereign debt crisis in the EU