http://www.bloomberg.com/news/2011-07-26/europe-needs-to-overcome-its-cognitive-dissonance-scott-minerd.html?cmpid=
What action should European leaders pursue? As Sherlock Holmes said, “When all other contingencies fail, whatever remains, however improbable, must be the truth.” Admitted or not, the realization hitting European policy makers is that the survival of the euro region will inevitably require a greater degree of fiscal unification. As German Finance MinisterWolfgang Schaeuble recently confessed, “The nation state as the sole level of policy making has exhausted its effectiveness.”He also admitted, “When we founded this monetary union, Germany was in favor of a political union, too.”
Austerity Doesn’t Work
In short, the data are proving that without currency devaluation, austerity simply doesn’t work. Crisis in Europe has not been averted; it has only been modestly postponed. Yet policy makers remain committed to the path of waiting and hoping for the best, seemingly oblivious to the need for significant structural reform.What action should European leaders pursue? As Sherlock Holmes said, “When all other contingencies fail, whatever remains, however improbable, must be the truth.” Admitted or not, the realization hitting European policy makers is that the survival of the euro region will inevitably require a greater degree of fiscal unification. As German Finance MinisterWolfgang Schaeuble recently confessed, “The nation state as the sole level of policy making has exhausted its effectiveness.”He also admitted, “When we founded this monetary union, Germany was in favor of a political union, too.”
No comments:
Post a Comment