Tuesday, August 30, 2011

Werner: Greek debt could be 3%

Ed Butler interviews Professor Richard Werner  on BBC World Service World Busines Report 30 August 2011. (Listen from 1m 25sec to 7m 30sec)

Werner says that the Basel III new banking regulations are 20 years too late and will make it difficult for banks to get credit flowing into the economy. This will exacerbate the credit crunch. 

He has quite different and much more appropriate monetary policy regulations for the health of the EU economy:
EU governments should stop issuing new bonds themselves as their old bonds mature. They should borrow from the commercial banks in their country. Greek debt could be fixed at 3%. Credit would flow and the economy would be boosted with no crowding out of the private sector.  

posted by Charles Bazlinton
The Free Lunch - Fairness with Freedom 
www.the-free-lunch.com
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