Don’t expect the latest proposal for resolving Europe’s massive deficit challenges to buy more than a few months relief – the same as other recent programs. “Each one seems to have a temporary effect … but in the end, you can’t solve these problems by printing money,” says Wharton finance professor Franklin Allen.
For more comment from Franklin Allen on the new proposal by Draghi and the ECB, see:
Let Spain, Greece (and maybe Italy) Exit the Eurozone Temporarily, Devalue and Grow
Last Chance Café – Will the ECB Finally Become a Bank of Last Resort?
Europe’s Policies Increasingly Risk Default and Uncompetitiveness