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
- From Labor Scarcity to AI Society: Governing Productivity in East AsiaArticle
The debate over AI and work too often centers on displacement. Facing aging populations and shrinking workforces, East Asian policymakers view AI not as a threat, but as a cross-sectoral workforce strategy.
Darcie Draudt-Véjares, Sophie Zhuang
- Governing AI in the Shadow of Giants: Korea’s Strategic Response to Great Power AI CompetitionArticle
In its version of an AI middle power strategy, Seoul is pursuing alignment with the United States not as an endpoint but as a strategy to build industrial and geopolitical leverage. Whether this balance holds remains an open question.
Darcie Draudt-Véjares, Seungjoo Lee
- Is China’s High-Quality Investment Output Economically Viable?Commentary
China’s rapid technological progress and its first-rate infrastructure are often cited as refuting the claim that China has been systematically overinvesting in non-productive projects for many years. In fact, as the logic of overinvestment and the many historical precedents show, the former is all-too-often consistent with the latter.
Michael Pettis
- The Iran War Shows the Limits of U.S. PowerArticle
If Washington cannot adapt to the ongoing transformations of a multipolar world, its superiority will become a liability.
Amr Hamzawy
- Where is the Groundwork for Lebanon’s Negotiations With Israel?Commentary
A prerequisite of serious talks is that the country’s leadership consolidates majority national support for such a process.
Michael Young
