>>2612330Stupid reply, even if it does lead me to catch an error. it should read
while fiscal policy remains separate.
Which is obviously clarified in the brackets. The difference between the dollar and the Euro is that when the federal reserve sets economic policy in NYC's interests, NYC pays taxes to Washington and Washington gives that money to whatever state is hurting (via unemployment benefits and other countercyclical stimulus).
yes, yes, it's not a household budget and really what happens is the state destroys NYC's money and then prints some for Gary, Indiana. This pedantic distinction doesn't matter at this level.In Europe the opposite happens: Germany runs a big budget surplus, and whichever country is having its recession worsened sees its fiscal position deteriorate further because Germany/The EU as a whole doesn't pay for their unemployment benefits,
they pay for their own.The USD, within the US, is an optimum currency area with fiscal and monetary union. The Euro has monetary union without fiscal union. You cannot equivocate between the two. You could equivocate with
non US countries using the dollar, but that
is a bad economic idea - it's just usually the least-bad option for countries that have chaotic macroeconomic histories.