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Government spending and taxation policies

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Reference no: EM132181422

Remembering that "fiscal policy" refers to a government's spending and taxation policies, what do the authors suggest that Germany (and Holland) might do in the fiscal policy realm to help Italy and other EU countries? Do you agree? Why or why not?

The authors argue that northern European countries should offer debt relief for Italy. How would debt relief help mitigate the current budget proposal crisis? Would it be wise for the EU authorities to implement such relief at this time? Why or why not?

Finally, do you agree with the author's conclusion that the euro zone's greatest weakness is not its spending but its politics? Why or why not? (Make sure in your answer to explain what this means.)

Reference no: EM132181422

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