Don't Expect Long-term Relief from the New ECB Funding Proposal
Episode Description
Don't expect the latest proposal for resolving Europe's massive deficit challenges to buy more than a few months relief -- the same as other recent programs. "Each one seems to have a temporary effect ... but in the end, you can't solve these problems by printing money," says Wharton finance professor Franklin Allen.
Brief Summary
Franklin Allen discusses Europe's deficit issues and ECB measures, highlighting temporary relief and potential political backlash in Germany.
Key points
- The Limits of Monetary Policy. Franklin Allen argues that printing money won't solve Europe's deficit issues.
- Growing Public Backlash in Germany. The German public is increasingly turning against ECB measures due to rising liabilities.
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Episode highlights
- The Limits of Monetary PolicyFranklin Allen argues that printing money won't solve Europe's deficit issues.“You can't solve problems by printing money.”1:01Sep 13, 2012
- Growing Public Backlash in GermanyThe German public is increasingly turning against ECB measures due to rising liabilities.“The chances that we'll see some kind of backlash are growing significantly.”2:28Sep 13, 2012
