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Alesina, Alberto
2 articles of this author have been cited in the European Press Review so far.
Debt-stricken states to blame for crisis
The US rating agency Moody's has downgraded Portugal's long-term government bond ratings by four notches from Baa1 to Ba2. The EU should stop accusing thrifty countries like Germany of lacking willingness to help, writes the liberal conservative daily Corriere della Sera: "They can't expect Germany alone to shoulder the problems of all the other countries without at the same time taking advantage of the Monetary Union. The notion that Berlin is the main culprit for the escalation of the Greek crisis is a fairytale. If it wasn't for the danger that other countries like Portugal, Spain, Ireland and Italy could be infected, Athens' debts would have been rejected without further ado. But the real problem is precisely this danger of other countries being infected by Greece. So it's really the countries at risk that are mainly to blame. The downgrading of Portugal's credit rating by Moody's demonstrates this."
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More from the press review on the subject » EU Policy, » Fiscal Policy, » Portugal
Joint action required
The Financial Times Deutschland documents an appeal by leading European and American economists exhorting the European states to take concerted action in the current financial market crisis. "The most recent events in the US have shown that it is pointless to try saving individual banks one after another. We need a systemic response. In Europe this means that the banking sector must be re-capitalised under the leadership of the European Union. ... An end must be put to the chaos on the financial markets before the real economy is seriously damaged. The savings of hundreds of millions of Europeans are in jeopardy. If the crisis causes the loan market to dry up this will lead to the large-scale destruction of jobs and companies. ... In Europe, saving an individual bank means that either a single nation shoulders the burden even though its neighbouring states also suffer from the side effects or a last minute improvised community action plan which entails sharing the costs is implemented. Up to now this latter procedure has made sense, but European banks are too independent of each other for national efforts or sporadic coordinated schemes to suffice. Any intervention by a nation state and any joint action by a small group of countries can have unforeseen repercussions for other European nations. ... Pan-European solutions should be developed where appropriate. ... To prevent crises of these dimensions in the future it will also be necessary to regulate the financial markets and institutes at a European level."
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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Europe, » U.S., » Global
All available articles from » Richard Baldwin, » Tito Boeri, » Willem Buiter, » Francesco Giavazzi, » Daniel Gros, » Stefano Micossi, » Guido Tabellini, » Charles Wyplosz, » Klaus Zimmermann
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