Europe's joint debt faces a Hamiltonian obstacle: whereas Hamilton justified federal assumption of state debts by creating a federal taxation power to service them, issuing large joint European debt lacks a clear corresponding taxation power, creating reluctance because the institutional framework for paying the debt is not clear.

causalpending

Speaker

Maurice Obstfeld

Evidence Quote

where is the taxation power that that um uh covers it? And I think there's some reluctance on this score because the institutional framework for paying the debt is not clear.

Source

The changing dollar regime: An updatePeterson Institute for International Economics
Created: 6/18/2026, 1:57:48 PM

My Notes

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