Keeping an eye on debt best way to stay out of trouble
THE Organisation for Economic Cooperation and Development is not known for its pithy sayings. Yet, in just 30-odd words, it has managed to summarise all the dangers of belonging to the single European currency.
"The lack of control over monetary policy, the no-bailout clause, the absence of debt pooling, a higher dependency on foreign financing and difficulties in adjusting to shocks," are the words in question. Any newspaper sub-editor would be proud to get so much information into so little.
They come, not from a newspaper of course, but a recent report, in the more usual orotund style, on desirable debt levels for countries and the kind of budget rules which might enable them to be achieved.