Willem Buiter on the Euro crisis
December 6, 2011
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Citigroup’s chief economist Willem Buiter has earlier written a host of academic papers on the deficiencies of the Euro system. Now in his new capacity at Citigroup he has some sobering thoughts about the Euro crisis and the future bleak prospects for the EU:
Slow growth or negative growth with high and/or rising unemployment is the new normal for the EA, the UK, Japan and the US, unless non-market ways of restructuring excessive sovereign, bank and household debt are pursued.
The question is if this new normalcy can prevail without riots in the streets? We will have to wait and see.