European Sovereign Debt Crisis and China
Professor Matt Slaughter discusses how although EU leaders laid out broad policy aspirations for how to resolve their sovereign debt crisis, there are difficult policy actions that need to been taken to realize those aspirations. One of those difficult actions is finding capital to expand the European Financial Stability Facility. In a telling sign of where global economic power lies today, instead of reaching out to the United States or Japan, European officials traveled to China—the country whose stunning economic growth and sound macroeconomic policies give the Chinese government today trillions of dollars in investible capital.
