William White – Working Paper No.250 – Federal Reserve Bank of Dallas – Globalization and Monetary Policy Institute – September 2015. Subsequently published as a Chapter in “The Political Economy of the Eurozone” Edited by A Cardinale, D’Maris Coffman and R Scazzieri. Cambridge University Press, 2017
The current belief system that says “all will be well” if domestic price stability can be maintained is fundamentally flawed. If this can be achieved only through monetary, credit and debt expansion, the end result will be an increased risk of systemic crisis.
WP 250 final