Let’s take a historical look at this tension, and let’s do so through the eyes of two great economists: Adam Smith explained in the 18th century that if you allowed people to work wherever they want and for whomever they want, the market would then work like an invisible hand, creating prosperity.3 The idea of a liberal market economy was born.
The equivalent of what Greece has done would have meant for the US an adjustment of 1.6 trillion dollars over three years. In EMU, this adjustment is being undertaken within a reinforced fiscal framework – a new set of rules – which strengthens the ability to prevent and correct the accumulation of excessive deficits.