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 ObstfeldEvidence 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.”
Created: 6/18/2026, 1:57:48 PM
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