So is saving the European banks who foolishly lent too much, in an European version of the subprime loan abuses. But not when nearly all of the adjustment costs have been borne by the local taxpayers and the local savers of the debtor countries.
The Euro may not be safe for long if the net exporting countries such as Germany keep setting new trade records.
Structural reforms are indeed essential, especially making the labour market more flexible and oriented to productivity.
But the critical stuctural problem of the Eurozone, the intra-Eurozone current account CAB imbalances which persist and widen in the face o double digit unemployment, received scant attention from any of the speakers.
Has the Balance of Payments ceased to matter?
Is international trade theory dead? Or are we simply dead to international trade theory?
Mariana Abrantes de Sousa