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Allan Meltzer's soluton for the financial crisis facing euro currency countries Portugal, Spain, Italy, Ireland and Greece
05/26/2010
Meltzer says a new currency union should be setup for the northern countries France, Germany, and others who commit to financial discipline and fiscally binding arrangements. The euro currency countries such as Italy and Greece should devalue their currency to fix gaps between wages and productivity in their countries. At a later stage these countries could be readmitted to the new currency union under strict fiscally binding arrangements with enforceable sanctions.
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