[8] For a discussion of the limits of knowledge and representation in policymaking, see Benassy-Quéré, A., Cœuré, B., Jacquet, P. and Pisani-Ferry, J. (2018), Economic Policy: Theory and Practice, Second edition, Oxford University Press, Chapter 2. [9] See Cœuré, B. (2017), “Scars or scratches? Hysteresis in the euro area”, speech at the International Center for Monetary and Banking Studies, Geneva, 19 May.
The Greek fiscal crisis, the subsequent European support package, and the resulting financial market concerns have not changed our central view about economic recovery, but they have certainly given us food for thought about the strength of European markets for our exports, about the robustness of the term funding markets for our banks, and about financial market tolerance for fiscal deficits.