Willem Buiter On The Economic Prospects For The Eurozone

An interesting discussion at the Council on Foreign Relations. Willem H. Buiter, chief economist at Citigroup, discusses break-up risk, sovereign debt restructuring, bank creditor bail-ins, debt mutualization, austerity, and growth in the Eurozone.

[youtube=http://youtu.be/d3uRNhjfHZo]

  • Frank Roels

    “a major expropriation of vested rights of the older generation” says Buiter. Sack Buiter without a pension?He has stock at Goldman.

  • Anthony Sperryn

    For those who hadn’t come across this before, here is a splendid example of a neo-liberal in full spate. Deeply dogmatic as to the value of unfettered free markets, totally unconcerned as to the social impact of the policies that he advocates and which have already produced havoc in most of Europe, he just rolls on. “Devil take the hindmost (who, incidentally deserve it)”, one can imagine him saying.

    Adherents of Social Europe need to examine each of the policies advocated in this video and come up with alternatives that recognise that individuals are living creatures and not merely contributors to GDP and fodder for financial markets.

    To start with – at least as a temporary measure – one needs to re-examine the notion of free movement of capital and to re-model it to prevent its perverted use and its perverse effects, which have been such a major element in Europe having got itself into the present crisis.

    The ideal of the Eurozone is a good one, but the area has gone through a period of hyperactivity which has seriously affected its stability. A period of calm is now required.