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Euro area reform: An anatomy of the debate

Jean Pisani-Ferry, (2018), “Euro area reform: An anatomy of the debate”, CEPR, Policy Insight No. 95, Οκτώβριος

There are essentially two possible theories for this enduring state of controversy: the ‘battle of interests’ and the ‘battle of ideas’. The first posits that problems are fundamentally distributional – decisions are controversial because they pit creditors against debtors, high-debt against lowdebt states, stable against crisis-prone countries, or global banks against local banks. The second emphasises cognitive issues. According to this reading, a major factor behind disagreements is that actors do not share the same representation of
reality, but rather work with different implicit or explicit models of it.

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