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Mohamed A. El-Erian

The Economics of Europe's Migrant Crisis

Lack of coordination and will makes solutions elusive.
A sign of desperation.

A sign of desperation.

Photographer: Mustafa Yalcin/Anadolu Agency/Getty Images

As our Eurostar train zipped from London through the Chunnel to Paris, I couldn’t help thinking about the thousands of migrants languishing on both sides of the Channel. Once again, national and regional political systems are struggling to cope with a mounting human tragedy and its spillover effects involve disruptions to commerce; and all this is stoking a political crisis. 

The economics of the Channel migrant crisis are quite clear, being basically about supply, demand and regulatory failures. It also sheds light on the potential solutions, though they will take time to materialize.