Barry Eichengreen: An 'explosion' in Europe remains a real risk

The European Central Bank's bond-buying policy is a step in the right direction, says Professor Barry Eichengreen. But it could be too little, too late.

The University of California's Professor Barry Eichengreen was among the first to warn that monetary union in Europe would mean stronger countries having to prop up weaker ones, says Finanz und Wirtschaft. Eichengreen, an expert on the Great Depression and the gold standard, is still worried that the euro crisis could end messily.

The European Central Bank's willingness to buy peripheral debt, and discussions among policymakers about fiscal and banking union, are steps in the right direction, he says, but "the pace is too slow". There could be "an explosion" before the future of monetary union is secured.

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