How 3 Myths Drive Europe’s Response to Debt Crisis: Harald Uhlig

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Feb. 17 (Bloomberg) -- In many ways, things in Europe lookbetter than they did just a month or two ago. The EuropeanCentral Bank is providing banks with almost unlimited cash tobuy their governments’ bonds. Yields on Italian debt havedeclined.

This breather is a perfect opportunity to examine somepernicious -- and widely circulated -- myths that have emergedfrom the crisis and could still do much harm.