Welcome, Guest Login | Signup | Portfolio | Bookmark | Contact
Markets

Symbol Name
Click for Symbol Help




Why Europe needs its own IMF

Financial Times - Mar 8, 2010

Like every good tragedy, the current Greek crisis has its origins in events and decisions long past. In particular, two historical flaws in the European approach to monetary and fiscal management have emerged as threats to European stability. They are not fatal; but they need to be fixed.

The first is the absence of a mechanism to address financial crises that could threaten, via contagion, the whole European market. It is worth recalling that this problem was well understood by the founding fathers of the common currency. The agreements of 1978 that produced the European Monetary System as a comprehensive fixed exchange rate regime also provided for the establishment of a European Monetary Fund within two years. An EMF would play an analogous role to that of the International Monetary Fund in the defunct international fixed exchange rate regime that had been created at Bretton Woods. In particular, it would allow countries that were hit by a sudden or unanticipated crisis to draw on its resources, and, like the IMF, would have allowed formal policy conditions to be imposed on countries. The EMF was never realised – but is once again under discussion.

Read Full Article from Financial Times

- Posted: 2010-03-08 11:25:09


 More Stock Investor Place Top Stories  
Anglo platinum arm sheds 14,000 jobs, risking unrest
Apple falls below $500
US retail sales rose 0.5 percent in December, led by autos, furniture and clothing sales
Recovery in U.S. Saving 8 Million Underwater Homeowners
Facebook shares rise in buildup to mystery event, earnings

 Stock Investor Place Top Stories Archive
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008















Featured Companies | My Place | News | Markets | Big Board | Blogs | Products & Services

Copyright 2024 Stock Investor Place Inc. All Rights Reserved.
Disclaimer - Terms of Use - Privacy Policy - Advertise