Europe can learn a lot on fiscal arrangements from India. But it won't

Europe is a large number of independent countries. How do you get them to cooperate within a common framework?

For several decades now the IMF has been doling out advice on fiscal good sense to developing countries. The core of the advice, regardless of the situation of the country and the responsibilities of its government, has been don’t spend hugely in excess of your revenues.

It’s therefore interesting to see the same advice being doled out now to European countries. A new research paper has this to say:

“The EU’s fiscal framework needs reform. While existing fiscal rules have had some impact in constraining deficits, they did not prevent deficits and debt ratios that have threatened the stability of