Default a World Away Has a Greek Lesson
Blejer, Mario, Levy-Yeyati, Eduardo. The inevitable is finally happening. Although new uncertainties tend to replace old ones — the focus has shifted to Italy’s troubles in the past few weeks — Greece is going through a default. It’s likely that this process will be guided by the broad outlines of an agreement reached between the […]
U.S. Futures and Out-of-Control Deficits
Eichengreen, Barry. Many Americans look at Europe’s financial crisis as something quite removed from their daily lives. But any assumptions that the same couldn’t play out in the United States itself are entirely misplaced, argues Barry Eichengreen, author of “Exorbitant Privilege.” Not only could it happen there, it could happen very quickly and rather dramatically, […]
What Can Save the Euro?
Stiglitz, Joseph. Just when it seemed that things couldn’t get worse, it appears that they have. Even some of the ostensibly “responsible” members of the eurozone are facing higher interest rates. Economists on both sides of the Atlantic are now discussing not just whether the euro will survive, but how to ensure that its demise […]