Saving private Greece-from ECB internal point of view

This noon, I took part in the Kennedy school Mossavar-Rahmani center at a luncheon. Speakers to Italian economist Lorenzo Bini Smaghi sir. The man who at the 2005 to 2011 period as the European central bank (ECB) executive board member and has recently joined the Harvard University Weatherhead center. According to the host introduced, Mr Smaghi was born in Tuscan noble family, in the 1980 s for his PhD in economics, university of Chicago, long after the European central bank and the bank in Italy. Mr Smaghi did not make a system that speech, but the focus from the host to the audience and answer some questions. As a continues to track the debt crisis of evolution of the researchers,polarized sunglasses I from his speech won the following some important information: first of all, even though the euro area and has a kind of speech, that is, if the Greek kicked out and let the eurozone Greek carried out large-scale debt restructuring, the Greek itself and the euro zone have benefits, but ECB to this problem pretty careful. They think that lehman bankruptcy provides a profound lesson. On September 15, 2008, before the market has learned that lehman brothers out of the big problem, and the American government may give up to save lehman. However, the lehman brothers bankruptcy itself or in the United States, short-term monetary market crash, and overall detonate crisis. The Greek exit the euro zone may cause itself unexpected huge systemic risk, and the risk may be communicated to the other southern Europe countries. Therefore, the ECB still hope to efforts to put through all kinds of Greek retained in the euro area. To Greece itself, withdraw from the euro zone itself also may result in the bank bankruptcy and super massive inflation, we can not exaggerated to use drachmas of currency depreciation after to the benefits of Greece. Secondly, the ECB is still hope to achieve loan aid and structure of the balance between reform. After all, the loan aid liquidity can only ease the situation in the short term, only through structural reforms to reshape competitiveness can eventually solve debt problems. Mr Smaghi quipped, the ECB to to the external market now explain, Italy and Greece is completely different, and the market should believe in Italy. But ECB while to the Italian people said, you with Greek no different, you also must advance finance consolidate and structural reform. Again, this Europe debt crisis reflect German social market economy system has special advantages. In a crisis Germany did not appear the serious problem of unemployment. This is because, after the crisis, German chancellor Angela merkel called several big enterprise boss to say at the meeting, our government has to cope with the crisis did what, now you enterprise must also be to to contribute. Enterprise and the government is a compromise, not mass to fire workers, but reduced the staff's working time properly and wages. This not only reduce the unemployment in Germany, and when the global economic situation better, makes Germany enterprise can quickly revive exports. In addition, Germany's financial market is relatively simple, the supervision of financial derivatives stricter, so is the impact of the financial crisis is controllable. Finally, when asked about the new President at Della ECB after taking office, the ECB will in style and trichet period have what not at the same time, Mr Smaghi repeatedly stressed, the ECB has 23 members of the executive committee (6 of the core members). This means that the ECB's making important decisions are collective decision, governor itself role of media may be exaggerated. In fact, after taking office of the implementation of the Della achish quite popular long-term financing operations (LTRO), is Mr Trichet executive committee before leaving office has been the consensus,discount nfl jerseys is the so-called predecessors trees descendants cool. More interesting is, before the end of lunch, the host asked a more gossip and, in the European central bank executive committee work, the most interesting times what it is. The answer has Mr Smaghi or feeling, the most interesting is, every time executive committee meeting, everyone in forecast, President of adult today the first question is what.

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