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Galbraith Warns Periphery Euro Nations Will Collapse, FTD Says

James Galbraith sees the current strategy to deal with the euro crisis leading to a dramatic increase in inequality, with growing unemployment and mass migration inside the region, the Financial Times Deutschland reported in a preview of an article to be published tomorrow.

The peripheral areas of the region will suffer a rapid and long-lasting decline similar to that experienced in the southern states of the U.S. after the Civil War, the University of Texas in Austin economist told the newspaper in an interview. One of Galbraith’s proposed solutions is a joint European pension fund, according to the FTD.