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Some commentators have drawn analogies between the fiscal difficulties of the United States and Greece and other weak members of the EMU. As Posner shows, the US and Greece have many similarities in terms of fiscal deficits and the rate of annual turnover of its government debt. However, one crucial difference is that the US has a much more robust economy, and greater growth prospects.


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Very true! Wonderful article, as usual. The EURO may struggle now but as you said, it doesn control its won currency in the same way as the US and therefore it is not allowed to deepen the debt too much.

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EMU. Either much more power over taxation and government spending has to be taken away from the individual member countries and given to the central authorities of the European Union in Brussels, or much more effective measures need to be introduced that would prevent government spending of different countries from greatly exceeding their tax receipts.


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