Two recent proposals for overcoming the euro area crisis make the case for monetary financing of the public sector. Watt proposes that the ECB finances public investment directly, while Pâris and Wyplosz contend that public debt may be effectively restructured by burying parts of it in the...

The system of multiple exchange rates thus has serious disadvantages, which become even graver in some developing countries where there is a combination of several unfavourable factors. Such factors are: Inflation, insufficient savings, irrational behaviour on the part of private economic...