The ECB: Using a Crisis to Maximize Leverage

Funk Kirkegaard, Jacob.

Paraphrasing Donald Rumsfeld, the former Defense Secretary, you fight a financial crisis with the institutions you have, not the institutions you might want. No doubt Europe went into its current financial and sovereign debt crisis woefully under-institutionalized. In effect, Europe was flying on just one motor—the European Central Bank (ECB), the only institution able to respond powerfully and in real time.

Πηγή: Peterson Institute for International Economics

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