Facing coronacrisis in peripheral countries: the political economy constraints (1/4)

In many countries, the national governments are responding to Coronacrisis with atypical economic policies, notably aiming to assure a minimal income for the whole population, and to save companies and banks from bankruptcy. Interestingly, this effort involves a clear alleviation on the ordinary constraints to economic policies. Nevertheless, in addition to these usual economic policies constraints, we cannot neglect the existence of violent political economy restrictions, especially in peripheral countries. In this module, we will therefore discuss the restrictions for the implementation of macroeconomic policy responses to Coronacrisis in peripheral countries, with focus on those related to the asymmetries of the International Monetary and Financial System (IMFS) – i.e., the currency hierarchy.