By Andreas Krner – German Chancellor Angela Merkel bluntly rejected euro zone bonds as a solution to the currency area’s sovereign debt crisis, saying on Thursday (9/15/11) that “collectivizing debts” would not solve the problem.
But Germany, the euro zone’s main paymaster, argues that it would raise the borrowing costs of virtuous countries and remove the incentive for profligate states such as Greece or Italy to clean up their public finances. more> http://twurl.nl/8wnp7z
- The Economic Catastrophe That Germany Can’t Forget, Caitlin Kenney and Zoe Chace, npr
- Central banks expand dollar operations, Sakari Suoninen and Marc Jones, Reuters
- IMF chief urges bold action to tackle crisis, Reuters