5. Economic Policies and Economic Perspectives

Economic policies prevented the collapse of the financial system and in Europe saved the euro, but they did not lead to an exit from the crisis. The main pillar of monetary policy was negative real interest rates by central banks, but these have a number of “side effects” that require central banks to shift course. However, moving from the state of an unprecedentedly prolonged monetary “emergency” to a state of normality is not an easy task. It would also adversely affect fiscal policies because it would lead to higher interest rates on public debt. The austerity policies in southern Europe establish conditions that no longer allow the return to growth rates of the initial euro period. Greece has been transformed into a debt colony.