Heinz College Events
Ricardo Reis - The Euro-crisis: a narrative and some solutions
What started as some trouble by the Greek government in selling bonds has led today to a neo-Nazi party getting 7% of the vote at the last Greek election, the Spanish state being on the verge of disintegrating, a majority of Germans expressing a desire in polls to abandon the euro, and discussion in the press about the possible end of the European Union. How did we get here? This talk will discuss the common roots of the European crisis, and the institutional failures that allowed it to spread across the continent. While each country is a different story, the economic forces behind the crisis in each of them have been similar. I will further present what are the minimal institutions needed to sustain the euro in the future, and speculate on whether these will be eventually adopted or not.
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