Martin Feldstein on abating the Euro crisis

A Weaker Euro Could Rescue Europe
Wall Street Journal
June 27, 2012
Commentary by: Martin Feldstein, George F. Baker Professor of Economics and member of the Belfer Center Board of Directors
Topic: Eurozone Crisis 

“The only way to prevent the dissolution of the euro zone might be a sharp decline in the value of the euro relative to the dollar and to other currencies. European politicians’ dreams of political union and permanent fiscal transfers are not realistic solutions to the multiple problems of the euro zone’s peripheral countries—especially on the tight schedule needed to halt the collapse of the single currency. The European Central Bank (ECB) may continue to provide additional liquidity, but experience has already shown that it cannot reduce sovereign bond yields to sustainable levels.”

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Also see Martin Feldstein‘s commentary on the impotence of the Federal Reserve:

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