Is the US demonstrating enough crisis leadership?
Whether from Congress or in statements from Obama administration officials, one thing is clear: no more bailouts of Europe. From one perspective the posture is common sense given the mounting US debt and struglling economy. But Edwin M. Truman, a senior fellow at the Peterson Institute for International Economics, believes passivity is a more dangerous course.
“But policy passivity risks exacerbating the European crisis and its macroeconomic effects. The United States must show more leadership. First, it must be bolder and more public in setting conditions on Europe’s loan programs. Then, if Europe finally responds convincingly, the United States should rally the rest of the world in a supporting role,” he writes in the New York Times.
Truman, a former Federal Reserve Board official, says financial support should come with conditions, however.