Academic Commons


Can the Euro Be Saved?

Beim, David O.

A sovereign debt crisis in the eurozone has morphed into a crisis of the euro itself, revealing three deep flaws in the euro’s design. Escalating inter‐country debt is the predictable result of locking together the currencies of countries as different as Germany and Greece. There is no governance structure to make binding decisions about debt restructuring. Most importantly, the ECB itself holds so many risky assets that it is frightened at the otherwise logical solution of debt restructuring. Only radical action could save the common currency.



More About This Work

Academic Units
Graduate School of Business, Columbia University
Published Here
August 17, 2012
Academic Commons provides global access to research and scholarship produced at Columbia University, Barnard College, Teachers College, Union Theological Seminary and Jewish Theological Seminary. Academic Commons is managed by the Columbia University Libraries.