But not all are prone to such desperate pessimism. For example, Daniel Gross believes that the exit from the euro area in Greece will have an impact on other countries if the European leaders will clearly understand that provide them protection. Charles Kalomiris from Columbia Business School, says that Greece will win only if you leave, because I will be able to declare a default and devalue the currency - and that both need to restore the competitiveness of the economy. What and Germany, as it already has considerable experience in matters of survival at high exchange rates. Fear of the consequences of the collapse - the main reason why fiscal union seems to still be the preferred option. Unfortunately, Europe is not capable of harsh and radical solutions, even in critical situations. That is why now all discuss the optimization EFSF. This fund should be given the banking functions, according to Gross and Thomas Mayer, and from Deutsche Bank. Then it will be much more capable and able to use loans to finance the ECB of its operations. An alternative solution - the ECB guarantees to the holders of state. bonds. These guarantees should be partial, but they limit the potential losses. There is another option - to offer investors protection against primary loss - it will take EFSF, and the ECB will provide them with nonrecursive loans. European leaders have criticized the financial engineering, provoked a banking crisis. Now they appreciate its virtues.Fragmentary analysis
But not all are prone to such desperate pessimism. For example, Daniel Gross believes that the exit from the euro area in Greece will have an impact on other countries if the European leaders will clearly understand that provide them protection. Charles Kalomiris from Columbia Business School, says that Greece will win only if you leave, because I will be able to declare a default and devalue the currency - and that both need to restore the competitiveness of the economy. What and Germany, as it already has considerable experience in matters of survival at high exchange rates. Fear of the consequences of the collapse - the main reason why fiscal union seems to still be the preferred option. Unfortunately, Europe is not capable of harsh and radical solutions, even in critical situations. That is why now all discuss the optimization EFSF. This fund should be given the banking functions, according to Gross and Thomas Mayer, and from Deutsche Bank. Then it will be much more capable and able to use loans to finance the ECB of its operations. An alternative solution - the ECB guarantees to the holders of state. bonds. These guarantees should be partial, but they limit the potential losses. There is another option - to offer investors protection against primary loss - it will take EFSF, and the ECB will provide them with nonrecursive loans. European leaders have criticized the financial engineering, provoked a banking crisis. Now they appreciate its virtues.