Antonio Borges, the (recently resigned) Director of the European Department of the IMF, spoke to SIEPR Associates at Stanford University about the European debt crisis and what can be done.
Topics of the presentation of Antonio Borges on the Eurozone crisis:
- What's at stake
- Causes of the current crisis
- Incomplete monetary union
- Current developments and risks
- Support vs Discipline
- What should be done
Yes, growth-oriented budget discipline can be done. And cutting pension benefits also helps to reduce hidden liabilities.
But the national central banks could do more to work together, instead of pushing the "loose lending" problems on each other.
What needs to be done is to focus on rebalancing the trade and current account deficits/surpluses within the Eurozone.
This will require many changes which are not in the "troika" play lists.
See also Of banks, Central Banks and moral hazard, ... easy credit at at root of the crisis