Wednesday, May 12, 2010

Krugman got competition

May 12 (Bloomberg) -- New York University professor Nouriel Roubini said Greece and other “laggards” in the euro area may be forced to abandon the common currency in the next few years to spur their economies.
A “real depreciation” in the euro is needed to restore competitiveness in nations including Spain, Portugal and Italy, he said in an interview on Bloomberg Television today. The euro will remain the currency for a smaller number of countries that have “stronger fiscal and economic fundamentals,” Roubini said.--
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Comment: It seems as if Roubini has joined the race in the competition with Krugman to be the most foolish US commentator on international finance. It was only a few days ago when Roubini foretold a break-up of the euro zone within a couple of days. Now he has extended his forecast to a couple of years. Smart guy.

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