This Cool Video from the Financial Times is a brief (five minute) exploration of the euro zone’s economic and policy challenges by two Financial Times correspondent (Claire Jones and Daniel Garrahan) and Simon Baptist, the chief economist for the Economist Intelligence Unit. While Jones, and to a lesser extent Garrahan, seem to advocate QE, despite recognizing the operational difficulties, I am more sympathetic to the case Baptist presents. What ails Europe is not so much about interest rates. The proper policy response is more fiscal in nature than monetary, and even this is not a substitute for structural reforms.
