Niall Ferguson has many interesting things to say about Europe, and particularly this :
« You cannot base fiscal federalism exclusively on a pact – a kind of pact of death that nobody ever runs a budget deficit. »
“There are, in fact, three ways out of an excessively large public debt. One is that you default … the second is that you inflate it away … a third way … is that you grow your way out of it. That’s rare. … the default scenario is the most likely of the three, simply because to inflate the debt away is something that the ECB is prohibited from doing. And as for growth, well, if austerity is the only solution in German minds, you can forget that.”
Read the interview in Business Insider.