Martin Feldstein: The man who predicted the euro debt crisis
Did Harvard economist Martin Feldstein predict the debt crisis that continues to strangle the economies of Europe? According to Washington Post columnist Charles Lane, he did.
“Like many of his colleagues, Feldstein doubted the single currency’s economic viability absent political and fiscal union. What Feldstein saw with special clarity, though, was the disaster that would ensue even — or perhaps especially — if Europe tried to increase political and fiscal union for the sake of monetary union,” writes Lane.
In his column, Lane notes that in a 1997 article written by Feldstein for Foreign Affairs magazine,in which he warned that “conflicts over economic policies and interference with national sovereignty could reinforce long-standing animosities based on history, nationality, and religion.”