@GhostOnTheHalfShell @economics-that-works

#Economics #PublicFinances
#US #EU #ConvergenceCriteria

(5/n)

...because you have to pay ever more of your currency to repay the foreign debt. Also, imported goods become more expensive for the same reason (#ImportedInflation.)
In order to support your currency's external value, you need to increase national interest rates.

(And here, the #InternationalFisherEffect comes into play:
"The international Fisher effect...is a...