June 6, 2012
Is the Globe Headed for Depression?
Martin Wolf, Financial Times
How much pain can the countries under stress endure? Nobody knows. What would happen if a country left the euro zone? Nobody knows. Might even Germany consider exit? Nobody knows. What is the long-run strategy for exit from the crises? Nobody knows. Given such uncertainty, panic is, alas, rational. A fiat currency backed by heterogeneous sovereigns is irremediably fragile.
TAGGED: Eurozone, Spain, United States, Europe, Greece, Germany