Commentary
Uri Dadush
{
"authors": [
"Uri Dadush"
],
"type": "other",
"centerAffiliationAll": "",
"centers": [
"Carnegie Endowment for International Peace"
],
"collections": [],
"englishNewsletterAll": "",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "",
"programs": [],
"projects": [],
"regions": [
"North America",
"United States",
"Western Europe"
],
"topics": [
"Economy"
]
}
Source: Getty
Other
The Euro and Washington
When the United States says that this is Europe’s problem to deal with and Europe is rich, it should bear in mind that a collapse of the euro would be disastrous for the United States
By Uri Dadush
Published on Dec 17, 2011
How badly would a collapse of the euro hurt the United States? Is there anything that Washington can do to help Europe?
When the United States says that this is Europe’s problem to deal with and Europe is rich, it should bear in mind that a collapse of the euro would be disastrous for the United States. It should also bear in mind the magnitude of the suffering in the European periphery.
It is true that Washington hasn’t even begun to scratch the surface of the fiscal problems in the United States, but it can and should still help. Unfortunately, the United States has told its traditional European allies that it won’t help with the crisis beyond the federal reserve bank providing some swap lines.
It is true that Washington hasn’t even begun to scratch the surface of the fiscal problems in the United States, but it can and should still help. Unfortunately, the United States has told its traditional European allies that it won’t help with the crisis beyond the federal reserve bank providing some swap lines.
Read more
But the euro crisis is a global problem. It is a European problem and it is an American problem. The United States will ultimately pay for the euro crisis—the question is only how it will pay. There are two options. It will either take out relatively cheap insurance through an expansion of the IMF that is needed anyway or it will pay in a terrible world recession. Washington can’t stand on the sidelines. MORE►
About the Author
Uri Dadush
Former Senior Associate, International Economics Program
Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.
- The Labors of Tsipras
- Greece, Complacency, and the EuroIn The Media
Uri Dadush
Recent Work
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
More Work from Carnegie Endowment for International Peace
- The U.S. Export-Import Bank Was Built for a Different Era. Here's How to Fix It.Commentary
Five problems—and solutions—to make it actually work as a tool of great power competition.
Afreen Akhter
- Russia Is Meddling for Meddling’s Sake in the Middle EastCommentary
The Russian leadership wants to avoid a dangerous precedent in which it is squeezed out of Iran by the United States and Israel—and left powerless to respond in any meaningful way.
Nikita Smagin
- The Fog of AI WarCommentary
In Ukraine, Gaza, and Iran, AI warfare has come to dominate, with barely any oversight or accountability. Europe must lead the charge on the responsible use of new military technologies.
Raluca Csernatoni
- Egypt’s Discrete Role in the Ceasefire with IranCommentary
Cairo’s efforts send a message to the United States and the region that it still has a place at the diplomatic table.
Angie Omar
- Realism and the Lebanon-Israel TalksCommentary
Beirut’s desire to break free from Iranian hegemony may push it into a situation where it has to accept Israel’s hegemony.
Michael Young
