The tragedy of the commons is brilliantly illustrated in this book. With the introduction of the euro, along with the expectation that stronger nations would bail out weaker nations such as the southern european countries, the interest rates and costs of higher deficits were artificially lowered due to this implicit guarantee.
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The Tragedy of the Euro by Philipp Bagus: The…
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The tragedy of the commons is brilliantly illustrated in this book. With the introduction of the euro, along with the expectation that stronger nations would bail out weaker nations such as the southern european countries, the interest rates and costs of higher deficits were artificially lowered due to this implicit guarantee.