Stiglitz on Europe:
What Can Save the Euro?, by Joseph Stiglitz, Commentary, Project Syndicate: Just when it seemed that things couldn’t get worse, it appears that they have. Even some of the ostensibly “responsible” members of the eurozone are facing higher interest rates. Economists on both sides of the Atlantic are now discussing not just whether the euro will survive, but how to ensure that its demise causes the least turmoil possible.
It is increasingly evident that Europe’s political leaders, for all their commitment to the euro’s survival, do not have a good grasp of what is required to make the single currency work. ...[continue reading]...
Markets clearly believe that the Europeans have found a formula that will make it possible for the ECB to step in and buy lots of Italian bonds.
I hope they’re right
Will the euro survive? I've always thought that it would, but that is based upon political considerations, not economics, and I can't claim to be an expert on the politics of the eurozone. What do you think?