Speaking as a guest star at the conference on financial markets organized by Kairos di Paolo Basilico in Milan, Nobel laureate Paul Krugman talks about the situation of the Euro. And he does it with a certain pessimism: “We have returned to a bad impasse, I see great uncertainty again”.
For Krugman the unlimited bond purchase program wanted by Mario Draghi "is a necessary condition, but not sufficient", to save the single currency, a measure useful to avoid an explosion of the crisis, but not strong enough to solve the problem of devaluation at its root. "The problems remain: stagnation, unemployment and public discontent."
The American economist then passes to Germany, "at the same time key and main obstacle" to the resolution of the crisis. Indeed, it is precisely Germany, the driving force behind the European economy, that opposes the possibility of a "more expansionist policy on the part of the ECB": Krugman also reproaches Germany for the lack of flexibility on requests to debtor countries, adding that "Spain and Greece they're trying hard."
questioned on Monti, then, Krugman dedicates words of esteem to the Italian premier, "I have great sympathy for Monti, he is a good man and did a good job, given the very little room for maneuver in which he found himself", warning however that "the permanence in the government of a force external to politics would be a disturbing element".
