To Save Euro, Turn Banks Into Mutual Funds: Laurence Kotlikoff
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Sept. 14 (Bloomberg) -- Eleven years ago, economichistorian Niall Ferguson and I marked the euro’s birth witha Foreign Affairs article titled “The Degeneration of EMU.” Weargued that absent centralized fiscal policy, euro-zonecountries would fight over how much money the European CentralBank should print to help pay their bills. We gave the euro adecade.
Tragically, we may end up close to the mark. The euro couldcollapse this fall unless the ECB commits to printing every lasteuro needed to keep Greece, Portugal, Ireland, Italy, Spain andLord knows who else (think Belgium and France) afloat. That’s atall order.