Monday, May 16, 2011

Frankel on the ECB's three mistakes (amv)

According to Jeffrey Frankel ©, the ECB made major mistakes by
  1. "the decision in 2000 to admit Greece in the Eurozone",
  2. "allowing the interest rate spreads on sovereign bonds issued by Greece (and other periphery countries) to fall almost to zero during the period 2002-2007" by accepting "Greek debt as collateral, on a par with German debt",
  3. "the failure to send Greece to the IMF early in the crisis".
For the details, visit