Is the End of the Crisis in Sight?
As Italian and Spanish spreads on government bonds decline, Europeans are breathing a big sigh of relief. But true recovery requires big structural shifts that will take many years. […]
Euro-Zone Crisis
How Italy Will Change
Europe needs to help, but even with help, Italy faces big changes and, assuming all goes well, two or three difficult years lie ahead. […]
Seek Outside Help
Though Europe can help itself economically by lowering interest rates and accelerating structural reforms, financial contributions from non-European countries through the IMF are needed most. […]
Preparing for Eurogeddon
The United States must take urgent steps to help Europe resolve its debt crisis, while simultaneously preparing for the worst—the collapse of the both the euro and global financial system. […]
How the U.S. Will Pay for the Euro Crisis
The euro crisis has grown too big for Europeans to handle alone. The United States must act to help save the euro—or risk paying a much bigger price if it collapses. […]
The Greatest Poker Game in History
Based on the experience of Greece, Ireland, and dozens of other countries that have had to resort to IMF-style rescue programs, Italy is unlikely to avoid a protracted and deep recession. […]
Five Great Misconceptions About the Euro Crisis
Five misconceptions—all rooted in denial—are preventing policymakers from appreciating the gravity of the crisis in Europe, which represents the greatest threat to the global economy since the Lehman debacle. […]
Taboos, Italy, and the Euro
Given the severity of the challenges facing Italy today—stagnating productivity, slow growth, and rising debt—and the country’s systemic importance, it is not unreasonable to ask whether Italy should stay in the euro. […]
Making Europeans
Since bailouts alone are failing to end the European debt crisis, a new approach that pacifies markets, strengthens banks, mitigates moral hazard, and is politically acceptable to both core and periphery countries is urgently needed. […]
How Will It End?
The current Euro crisis will either cause the European monetary union to collapse, leading to sovereign defaults across Europe, or it will force European countries to take real steps toward fiscal union and tighter economic coordination. […]