Panic has become all too rational
That is the title of a recent OpEd by the always astute Martin Wolf in the Financial times. Wolf argues passionately that in this time of crisis, decisive action and ample credit are both needed to forestall the rising lack of faith in the economic system that is threatening to turn the Eurozone into another 1930s type event.
Before now, I had never really understood how the 1930s could happen. Now I do. All one needs are fragile economies, a rigid monetary regime, intense debate over what must be done, widespread belief that suffering is good, myopic politicians, an inability to co-operate and failure to stay ahead of events.
Tags: Euro crisis