of course the now infamous and ridiculous 3% of gdp ceiling is idiotic
even if converted to an over the cycle criterion
and
we all know this bit:
" national debt lower than 60% of GDP "
but what old this mean "or approaching that value"
headed that way from whatever starting position
not really a big hurdle once zonal average nominal gdp growth gets back to the 7 to 8 % range
the nasty grind down past 4 or 5 % to even sub 2% inflation is the evident culprit
nothing prevents a stable range of 5 % plus or minus 1% eh ??
so long as the ECB kept sovereign borrowing rates at par with inflation
any balanced budget national pub sec passes the test
of course intra zone trade imblances make balanced budgets everywhere in efficient
only the whole zone really needs something approaching that
and even then only if coupled with a balance trade with outside the zoners
