February 17, 2012

Three Myths That Could Still Sink Europe

Harald Uhlig, Bloomberg

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In many ways, things in Europe look better than they did just a month or two ago. The European Central Bank is providing banks with almost unlimited cash to buy their governments’ bonds. Yields on Italian debt have declined.

This breather is a perfect opportunity to examine some pernicious -- and widely circulated -- myths that have emerged from the crisis and could still do much harm.

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TAGGED: Italy, Euro, European Debt Crisis, Harald Uhlig


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