Nouriel Roubini, an American economist, shared his point of view about the Greek crisis and the Euroepan single currency. According to him, pulling the plug on funding Greece, which has already been bailed out twice, would lead to the collapse of the Euro, Roubini warned. Roubini's opinion is that the euro zone had two choices.The first one is providing funding to facilitate an orderly exit by Greece. And the other path is to keep the Balkan country in the single currency by financing it in the same manner as West Germany supported the East after unification back in 1990. Nouriel Roubini believes that the second option would be cheaper in the long term for the European taxpayer than allowing the euro zone to break up.
According to Roubini The European Central Bank should expand money supply massively in order to weaken the euro, ideally to parity with the U.S. dollar. That course of action will give Greece, Italy and Spain a real chance to become competitive. Roubini added that heads of state in the European Union need to come up with a plan for five to 10 years at the end of which Europe must have a unified banking system with a centralized regulatory authority.
Nouriel Roubini is an American economist, chairman of Roubini Global Economics, an economic consultancy firm. He also teaches at New York University's Stern School of Business.
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