“All too often in the midst of an economic and financial crisis, policymakers either engage in denial or else take flights into fantasy. Sadly, the present Greek crisis is proving to be no exception. Rather than recognising the Greek crisis for the solvency issue that it is, European policymakers seem to be convincing themselves that foreign speculation is at the core of the crisis. And at a time when the European economic house is burning, European policymakers are now indulging in the fantasy that an inevitably tortuous Treaty modification allowing for the establishment of a European Monetary Fund will have any relevance for the resolution of the present Greek crisis.” Read more.

 

Desmond Lachman

Intereconomics, March 29, 2010.

Via the American Enterprise Institute for Public Policy Research.