2012 has the markings of a difficult year. The future of the euro is inscrutable and Europe is likely already in recession. Growth is slowing in the major emerging economies, and the recovery in the United States remains slow and fragile.

With EU leaders scrambling to keep Greece afloat, rating agencies continuing to downgrade European sovereign credit, banks being pushed to the brink, and Europe likely slipping back into recession, time may be running out for the euro.

As fears rise over currency clashes, policy makers must confront the challenges of a two-speed global economy where China and other emerging markets are surging ahead while Europe, the United States, and Japan face a number of serious economic concerns.

As market confidence in the Greek government debt teeters on collapse, and confidence in Portugal, Spain, and Ireland continues to erode, an urgent question has emerged: will the Euro area implode?

After the worst year of economic performance in recent memory, most projections show positive growth in 2010, but questions about the sustainability of the recovery remain central.

Carnegie's Albert Keidel and the Institute for International Economics' Morris Goldstein engaged in a lively debate. Desmond Lachman of the American Enterprise Institute moderated the discussion.