Trichet's Risky Business

In an effort to maintain price stability, the ECB president recently signaled an interest rate bump that could further hurt damaged economies including Italy

It may soon be time to cue the euro-skeptic chorus—the minority of economists and businesspeople who believe the European common currency will eventually fail because of its own internal contradictions. But they're wrong: Europe has way too much invested in the euro to back out, and there would be serious consequences if it did, such as much higher borrowing costs for governments and corporations in countries like Italy.

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