WHO FIRST WARNED ABOUT THE EURO? THE WSJ WEIGHS-IN
Author: L. Randall Wray
As the world’s financial markets begin to price in a total collapse of the euro project, there’s no shortage of economists and other experts saying they always knew it was doomed to failure. So who warned first?
Well, only last week, a senior International Monetary Fund economist resignedand wrote a scathing letter to the board blaming management for suppressing staff warnings about the 2008 global financial crisis and for an alleged pro-European bias that he says exacerbated the euro-zone’s debt turmoil.
But long before the 2008 crisis, many economists were warning there were structural problems in the euro set up. And now the Levy Economics Institute of Bard College has issued a policy note, provocatively headed Euroland’s Original Sin, which names five of them.