Tuesday, December 31, 2013

Germany and The Eurozone

Suppose that growth is faltering next year in the Eurozone, unemployment is high, deflation a near and present danger and the Euro keeps on rising, then either the Germans accept a fiscal union, debt mutualisation and a fiscal stimulus and higher wages in Germany. Or, if the political constraints in Germany are such that they cant do that thing, like in the case of many other things, then they are going to outsource the job of saving the Eurozone to the only institution that has the firepower and of capable going ahead independently of legislative action and doing what is necessary. And that institution is the ECB.- in www.fuw.ch

Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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