FRANKFURT, April 30 (BestGrowthStock) – European policymakers should
abandon current efforts to help Greece and move to a plan B
including debt restructuring and interest rate cuts, U.S.
economist Nouriel Roubini said.
In an opinion piece in the Financial Times, Roubini and
co-author Arnab Das, head of market research at Roubini Global
Economics, said forcing deep budget cuts in Greece would have
knock-on effects and risk a disorderly default.
“Much time has been lost in denial but if the following
steps are taken it might not be too late to avoid a disorderly
outcome,” they wrote.
Plan B should include restructuring debt, a fiscal
adjustment plan for the euro zone periphery, a larger aid
package from the European Union and International Monetary Fund,
rate cuts, demand stimulus in Germany and a coordinated effort
to correct institutional weaknesses.
“The (European Central Bank) must be on-side with
refinancing to forestall a run on Greek banks; easy monetary
policy to weaken the euro, thus helping to restore
competitiveness and prevent deflation; and liquidity facilities
for overexposed third-country banks,” they said.
Stock Market Research Tools
(Reporting by Krista Hughes; Editing by Toby Chopra)
EU should restructure Greek debt, ECB cut rates-Roubini
