Harvard University's Prof. Feldstein disagrees with those who think that Europe will successfully rescue Greece. The problem is that every country can set its own fiscal and tax policy according to his interview today on Bloomberg radio.
In 1997 he published a prescient article on the weakness of the European Union - and feared that international war might result. EMU and International Conflict Foreign Affairs
The US bond market seems to agree with the professor; credit spreads continue to increase over the benchmark 10-year treasury.
1 comment:
Let me guess, Feldstein's solution is not for the Greeks to default, but rather, a new super governmental body, with a regional taxing authority, should be established? Refreshing fiscal austerity seems never to be the answer.
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