The New York Times (September 12)
2011/ 09/ 13 by jd in Global News
Nobel Prize winning economist Paul Krugman believes “the euro is now at risk of collapse.” He warns that “we’re not talking about a crisis that will unfold over a year or two; this thing could come apart in a matter of days. And if it does, the whole world will suffer.” To avoid “an impeccable disaster,” Krugman believes the European Central Bank (ECB) must “lend freely and cut rates.” In addition, the ECB should be “buying up Spanish and Italian debt — that is, doing what these countries would be doing for themselves if they still had their own currencies.”
