Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
But lack of correlation indicates a lack of causation, so if other countries has larger increases in debt it indicates that eurogreen's last sentence isn't true. It isn't because of the euro that the euro zone can run deficits, it is despite the euro. Also because sovereign governments with their own currency are not restrained by deficits, only countries using a foreign currency are.

Sweden and Denmark are your typical "frugal" countries with current accounts surpluses (easier outside the euro zone) and low debt/GDP ratios. Actually, now I realise that one can argue against the metric in my last comment in that relative increase in government debt gives undue weight to previous debt level (which is low in the case of Sweden and Denmark). So if one wants to make comparisions one should use some other metric.

by fjallstrom on Thu May 6th, 2021 at 08:54:31 PM EST
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