with Fred Bergsten | Director Emeritus of the Peterson Institute for International Economics (PIIE)
Moderation: Marcel Fratzscher | President of DIW Berlin
Germany, for solid economic as well as geopolitical reasons, has clearly indicated that it will pay whatever is necessary to preserve the euro. But its preference for financing the deficit countries rather than helping them reduce their imbalances condemns the Eurozone to "high-level stagnation" and risks the long-term survival of the project. Germany can pursue several policy options that would reverse, or at least moderate, its current bias, and thus strengthen the prospects for prosperity in the short run and viability in the long run, without violating its propensities for economic stability and fiscal rectitude.
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